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Oil Prices Dragged Down by Likely Growth in U.S. Stockpiles; January Brent crude on London's ICE Futures exchange fell $0.29 to $47.85 a barrel

Author: Hsu, Jenny

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.

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International oil prices been falling for three straight sessions, largely weighed by dimming prospects that major oil producers will reach a deal to cut production by the month-end as originally planned.

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Crude-oil futures retreated in early Asian trade Wednesday on expectations that U.S. crude inventories were bolstered significantly last week, exacerbating the global glut that has kept prices in the doldrums for over two years.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $46.30 a barrel at 0238 GMT, down $0.37 in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell $0.29 to $47.85 a barrel.

U.S. crude stockpiles are said to have swelled by 9.3 million barrels for the week ended Oct. 28, according to industry group American Petroleum Institute. The growth, if confirmed by the U.S. Energy Information Administration later Wednesday, would mark the biggest single-week growth since March. Analysts cite strong imports and low refinery utilization as reasons for the increase.

At 468.2 million barrels, U.S. crude oil inventories are above the 448-million-barrel inventory at this time last year, the EIA said last week.

The API also tipped a 3.6-million-barrel decrease in gasoline stocks and a 3.1-million barrel decline in distillate inventories.

"The overall impact may be cushioned by larger-than-expected draws in the products," said Tim Evans, a Citi Futures analyst.

In September, leaders of the Organization of the Petroleum Exporting Countries met and agreed to curtail the group's production, possibly by 200,000 to 700,000 barrels a day. The goal was to pump up prices by removing some unwanted barrels from the market.

The move nudged prices up initially, but with more countries asking to be exempt from the cut, the market fears that even if an agreement is ratified at the Nov. 30 meeting in Vienna, the deal would be weak and overall production would still rise.

"Traders are selling on the assumption that there is now no prospect of OPEC implementing an effective production ceiling in the near future," said Ric Spooner, chief market analyst at CMC Markets.

Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 171 points to $1.4670 a gallon, while December diesel traded at $1.5035, 134 points lower.

ICE gas oil for November changed hands at $435.25 a metric ton, down $1.50 from Tuesday's settlement.

Write to Jenny Hsu at jenny.hsu@wsj.com

Credit: By Jenny Hsu

Subject: Crude oil; Inventory; Price increases; Futures; Supply & demand

Location: United States--US

Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834607608

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834607608?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: GE Capital Will Finance Oil Deal

Author: Murphy, Maxwell

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Nov 2016: B.5B.

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General Electric Co. won't have to look far for the $7.4 billion it needs to finance the oil-and-gas division's combination with Baker Hughes Inc. Its GE Capital unit will provide the loan.

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General Electric Co. won't have to look far for the $7.4 billion it needs to finance the oil-and-gas division's combination with Baker Hughes Inc. Its GE Capital unit will provide the loan.

For the near term, GE will essentially be paying interest to itself, which won't add additional incremental interest costs, said finance chief Jeffrey Bornstein on a Monday conference call to discuss the deal. GE will own 62.5% of the combined company while Baker Hughes shareholders will receive that $7.4 billion as a dividend and own the remainder.

"We will utilize the excess debt and liquidity we have in GE Capital, which results in no incremental interest cost for the company through 2019," he said on the call.

But as GE works to further shrink its once massive capital arm, it isn't quite as simple as a round-trip intracompany transaction. The debt ultimately becomes part of the parent company's liabilities.

"As part of the unwind of GE Capital, GE itself either assumed or guaranteed all the GE Capital debt," said Robert Schulz, who rates GE debt for S&P Global Ratings. "They are actually liable for that debt," he added, which is why S&P assumes that debt actually belongs to the industrial parent for ratings purposes.

By selling assets, GE Capital bulked up its balance sheet with cash. "They have this excess cash there, and it's earning very little," he said, which makes using those funds to finance the transaction attractive.

Mr. Schulz earlier Monday affirmed GE's investment grade "AA-" credit rating.

A GE spokeswoman directed requests for comment to its conference call remarks, and said Mr. Bornstein wasn't immediately available. A GE Capital spokesman referred all comment to the parent company.

Funding the deal raised questions about GE tapping into $20 billion to $25 billion in excess liquidity it has previously referred to in its December 2015 outlook. Mr. Borenstein told analysts Monday that the $7.4 billion "does tap into that," and that GE will do a transaction with GE Capital to provide the leverage for the deal." And because the company already is incurring the interest cost, if you will, of that debt inside the enterprise, through 2019, the incremental interest cost to the company for the debt will essentially be zero," he said.

Investors have been hoping GE will use the capacity to fund shareholder returns, particularly share repurchases.

"We've been talking about the excess debt as a drain on nonoperating carry costs" for GE, said Steven Winoker, who follows GE equity for Bernstein Research.

Credit: By Maxwell Murphy

Subject: Funding; Acquisitions & mergers

Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5B

Publication year: 2016

Publication date: Nov 2, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834686862

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834686862?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Oil Industry Shows Signs of Improvement

Author: Kent, Sarah; Williams, Selina

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Nov 2016: B.3.

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Royal Dutch Shell PLC and BP PLC posted better-than-expected third-quarter profits, joining other big oil companies in showing progress in adapting to a world of cheaper crude as prices edge back from lows earlier in the year.

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LONDON -- Royal Dutch Shell PLC and BP PLC posted better-than-expected third-quarter profits, joining other big oil companies in showing progress in adapting to a world of cheaper crude as prices edge back from lows earlier in the year.

The European companies' results supported a cautious optimism creeping into the oil industry after more than two years of lower profits or losses in a sector once known as a cash machine. BP and Shell both said they expect oil supply and demand to come back into balance after a glut that pushed prices down by more than 50%.

Both companies said they had made progress in stabilizing profits even during a third quarter when prices averaged less than $46 a barrel. This year and last "was about restoring balance," BP Chief Financial Officer Brian Gilvary said during a call with analysts.

Shell returned to a profit, posting the equivalent of $1.4 billion in net income for the third quarter of 2016 after reporting a net loss of $6.1 billion a year earlier. BP reported net earnings of $1.7 billion, up 35% from $1.2 billion.

BP and Shell's results were a positive signal in a mixed season of earnings. French oil company Total SA last week said its third-quarter profit almost doubled from a year earlier to nearly $2 billion, a gain the company's chief executive, Patrick Pouyanne, attributed to deep cost cuts.

In the U.S., Chevron Corp. returned to the black after recording losses for three straight quarters, aided by measures to cut spending and costs. Its earnings, however, were still down 35% compared with the third quarter of 2015.

Exxon Mobil Corp., the world's largest publicly traded oil producer, registered its eighth-straight quarter of year-over-year profit decline, illustrating how efforts to manage the price downturn remain a work in progress.

Oil prices generally were lower in the third quarter of 2016 compared with a year earlier, averaging $45.86 a barrel for Brent crude, the international benchmark. After trading at heights of $100 a barrel or more for much of 2011 to 2014, oil succumbed to a global oversupply that has kept prices depressed.

Most big oil companies are working to reduce costs in an uncertain price environment. Shell said next year it expects to spend $25 billion on finding and developing new oil and natural-gas reserves, at the lower end of a spending range it disclosed this year to investors.

BP said it planned capital spending in 2016 of $16 billion, down from the $17 billion to $19 billion previously forecast. Exxon slashed its capital and exploration spending 45% in the third quarter from a year earlier.

The third-quarter results for Shell and BP were significant for both companies after a tumultuous few years. For Shell management, the sharp increase in profit marked a victory, demonstrating for the first time the value the company's acquisition of BG Group earlier this year.

BP's results were the first unmarked by significant charges related to the company's fatal blowout in the Gulf of Mexico in 2010. The company is trying to move on from the accident after putting a final cost on the disaster of $61.6 billion over the summer.

Any recovery could still be precarious as members of the Organization of the Petroleum Exporting Countries are struggling to hammer out a plan for a modest output cut before a Nov. 30 meeting in Vienna. Their failure to agree is keeping a lid on oil prices that staged a modest recovery last month, and optimism within the industry remains cautious.

Credit: By Sarah Kent and Selina Williams

Subject: Net losses; Financial performance; Energy industry; Company reports

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: BP PLC; NAICS: 211111, 324110, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2016

Publication date: Nov 2, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834741612

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834741612?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Maersk's Profit Tumbles on Weak Freight Rates, Low Oil Prices; Danish conglomerate continues to be hurt by slowing global trade and shipping overcapacity

Author: Paris, Costas; Chopping, Dominic

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.

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A.P. Moller-Maersk A/S's third-quarter profit plunged 43% as weak freight rates and low oil prices continued to batter the Danish shipping-and-oil company's results. Chief Executive Soren Skou said in an interview that shipping freight rates bottomed out at the end of the first quarter and are slowly rising partly due to the withdrawal of Korea's Hanjin Shipping Co. Hanjin, the world's seventh biggest player, filed for bankruptcy protection in August.

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A.P. Moller-Maersk A/S's third-quarter profit plunged 43% as weak freight rates and low oil prices continued to batter the Danish shipping-and-oil company's results.

Maersk's shares sank more than 7% in Copenhagen on Wednesday. Investors fear that the shipping industry--the company's biggest market--remains caught in its deepest down-cycle in 30 years.

Maersk Line, the company's shipping unit and the world's biggest container operator, swung to a loss of $122 million, from a $243 million profit a year ago.

Net profit for the company dropped to $429 million from $755 million a year earlier, as revenue fell 9% to $9.18 billion. Analysts had forecast a profit of $496 million on revenue of $9.39 billion, according to FactSet estimates.

Maersk kept its full-year profit projection at below $1 billion, significantly lower than last year's $3.1 billion profit, due to developments in the global economy, container freight rates and weak oil prices.

Chief Executive Soren Skou said in an interview that shipping freight rates bottomed out at the end of the first quarter and are slowly rising partly due to the withdrawal of Korea's Hanjin Shipping Co. Hanjin, the world's seventh biggest player, filed for bankruptcy protection in August.

"Spot rates out of China reached their lowest levels in March and now they have almost doubled," Mr. Skou said. "From the second quarter to the third quarter we have seen a general rise in rates of 5.5% and we see the trend continuing in the fourth quarter."

Mr. Skou said a wave of consolidation sweeping the industry is set to continue. "Nobody could have expected how fast it's happening. It's dramatic change," Mr. Skou said. "In 1996 the top three carriers had 17% combined market share. By next year the top three carriers will have 43% market share, and it's not going to stop there."

Maersk also has an oil business, which is drastically cutting costs to adjust to falling oil prices.

"Maersk Oil has done a great job to bring down its costs and the break even point to $40 a barrel and is making a good profit with today's prices," Mr. Skou said.

Maersk Line, the group's biggest unit and responsible for more than half of its revenue, laid off 4,000 workers, or 17% of its staff, in 2015. But Mr. Skou said no further layoffs are currently planned. Maersk Line moves about 15% of global seaborne freight and is seen as a barometer of global trade.

The company said the container volume it shipped for the quarter was up 11% from a year earlier. The industry average is growth of between 2% and 3%.

"They are rapidly winning market share," said Lars Jensen, CEO of SeaIntelligence Consulting in Copenhagen. "Their competitors must now choose to either relinquish it [market share] to Maersk or reignite a price war, which they probably can't afford. When freight rates eventually go up, Maersk will benefit the most."

Container ships move 98% of the world's manufactured goods, from iPhones and toys to designer dresses and heavy machinery. But slowing global trade and a glut of shipping capacity in the water, estimated at 30% above demand, have pushed freight rates to levels barely covering fuel, driving most operators deeply into the red.

Global trade is forecast to grow by just 1.7% this year, marking the slowest pace since the 2008 financial crisis, according the World Trade Organization.

Freight rates have averaged less than $700 a container a month since the start of last year on the benchmark Asia-to-Europe trade route with the break-even point at $1,400. Shipping executives estimate the top 20 operators will post combined losses of as much as $10 billion this year.

The downturn has prompted a rare wave of consolidation among the industry's top 20 operators and so far pushed a handful of companies out of business. Maersk said last week it will be chartering six of Hanjin's biggest ships.

Japan's top three shipping companies--Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha--said on Monday they would merge container operations to fight the industry's downturn through synergies.

Maersk initiated in September a wide-ranging reshuffle that will see the company split into two businesses , one focusing on transport and logistics and the other on energy. Implementation is progressing and further details will be provided at the group's capital markets day next month, it said.

Maersk Oil is one month into a three-month review of its organization as it adjusts to the low oil price environment and makes changes to both its portfolio and long-term growth plans. The unit managed to slash costs by a fifth in the quarter and it said it can now break even with an oil price below $40 a barrel, having previously needed prices at between $40 and $45 a barrel.

Maersk Oil contributed a profit of $146 million, up from $32 million a year earlier.

Write to Costas Paris at costas.paris@wsj.com and Dominic Chopping at dominic.chopping@wsj.com

Related Reading

* Maersk CEO Soren Skou: Freight Rates Are Rising

* Shipping Giant Maersk to Split Into Two Divisions (Sept. 22)

* Hyundai Merchant Marine Among Five Bidders for Hanjin's U.S.-Route Assets

* Maersk, MSC to Charter Nine Former Hanjin Ships

Credit: By Costas Paris and Dominic Chopping

Subject: Corporate profits; Prices; Shipping industry; Market shares

Company / organization: Name: Maersk Oil; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834770487

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834770487?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Falls on 'Most Bearish Report of All Time'; Crude-oil inventory surges the most in 34 years of data, extending selloff

Author: Puko, Timothy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.

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OPEC members Iran, Nigeria and Libya have already secured exemptions from the agreement because they have faced petroleum-output disruptions. Because of these concerns international oil prices have been falling for three straight sessions.

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Oil prices extended their slump after data showed the biggest weekly U.S. crude surplus on record, the latest sign of the hurdles facing traders banking on higher prices.

The supply data prompted investors to reduce expectations that two years of oversupply in the oil markets is coming to an end. U.S. prices immediately shed nearly $1 a barrel and losses spread into gasoline and diesel futures.

U.S. crude futures fell $1.33, or 2.9%, to $45.34 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.28 a barrel, or 2.7%, to $46.86 a barrel on ICE Futures Europe. Both posted their seventh loss in eight sessions and lowest settlement since Sept. 27.

"You could easily make the argument it's the most bearish report of all time," said Bob Yawger, director of the futures division of Mizuho Securities USA. "There's nothing to support the market."

The U.S. Energy Information Administration said crude-oil stockpiles rose by 14.4 million barrels in the week ended Oct. 28--the largest weekly increase in 34 years of data collected by the EIA. Analysts polled by The Wall Street Journal expected a more modest increase of 1 million barrels.

U.S. oil has now fallen 12% in just two weeks since hitting a one-year high on Oct. 19. It is the latest in a series of sharp retreats to hit the market this year every time prices hit around $50 a barrel.

Many traders consider that a ceiling because supplies are still so strong, coming from both cost-cutting shale-oil drillers in the U.S. and national oil companies abroad fighting for customers. Traders are skeptical about plans from global exporters to cut production. Russian data released Wednesday showed a new post-Soviet era output record, and U.S. government data showed weekly imports climbed to a four-year high.

Oil's sharp fall in recent weeks marks the return of some of the volatility that had characterized the market earlier this summer. Even as equity markets have largely stabilized since March, commodities and currencies have usually kept up their wild swings. This is oil's third retreat from $50 toward $40 within five months, a shift often characterized by moves larger than 10% within just a few weeks.

Many other markets had become placid as traders became focused on very few events, and grew certain of both a rate increase coming only in December and the strong likelihood of Hillary Clinton beating Donald Trump in the U.S. presidential election, said Alain Bokobza, head of global asset allocation at Société Générale SA in Paris. But one thing those beliefs did do is spur a dollar rally throughout October, which heaps more volatility on oil markets that are traditionally volatile.

A rising dollar makes dollar-denominated commodities like oil more expensive for traders who are based in countries using other currencies, and those commodities often fall as the dollar rises. That often-strong connection went dormant for several months, but appeared to pick up in mid-October when the dollar kept rising and a month-long rally in oil began to reverse.

Oil was also highly influenced by the Organization of the Petroleum Exporting Countries, which had said in late September it would consider an agreement on output cuts later that year. That made oil one of the few assets impacted by two of the biggest events to captivate the markets, OPEC deal-making and rate decisions coming from the fed.

"The volatility (in oil) never goes away. It can be high or higher," Mr. Bokobza said.

Even bullish traders had been skeptical of OPEC, but many were also pointing to other signs that the oil market had fundamentally changed regardless of what OPEC did.

Before last week, U.S. stockpiles had drained seven out of the eight prior weeks, and other major storage hubs showed signs they were falling from record highs, too. It had many bullish traders convinced oversupply may have already ended, extending oil's rally.

Last week's record storage addition puts U.S. crude stockpiles now back nearly at the levels they were before that string of drawdowns, about 480 million barrels, according to the EIA. That, combined with continued bickering from OPEC members and uncertainty over the presidential election has caused Gresham Investment Management LLC to sell bullish oil positions this week.

"The two elements of what lifted prices up are now in question," said Jonathan Berland, managing director at the firm, which manages about $7.8 billion and specializes in commodities.

Gasoline futures lost 3.62 cents, or 2.4%, to $1.4479, a one-month low. Diesel futures lost 5.04 cents, or 3.3%, to $1.4665 a gallon, also a one-month low.

Alison Sider contributed to this article.

Write to Timothy Puko at tim.puko@wsj.com

Credit: By Timothy Puko

Subject: Crude oil prices; Supply & demand; Crude oil; Inventory; Gasoline prices; Pipelines

Location: United States--US

Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Colonial Pipeline Co; NAICS: 486910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 2, 2016

Section: Markets

Publisher: Dow Jones & Com pany Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834843528

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834843528?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Ex-BlackRock Fund Manager Mark Lyttleton Pleads Guilty to Insider Trading; Charge relates to 2011 trades involving EnCore Oil and Cairn Energy

Author: Margot, Patrick

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.

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"In his role in the fundamental equity team at BlackRock, Mr. Lyttleton was able to discover and act on inside information either by working on the deals concerning the stocks or being party to conversations conducted by colleagues," the Financial Conduct Authority--the U.K. regulator prosecuting the case--said in a statement.

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LONDON--Mark Lyttleton, a former BlackRock Inc. fund manager, pleaded guilty to two counts of insider trading Wednesday, admitting using information from his job to make personal trades.

Mr. Lyttleton, an equities fund manager at BlackRock for more than a decade, was charged for trades involving two stocks, EnCore Oil PLC and Cairn Energy PLC, in 2011.

EnCore Oil was being acquired by another oil company at the time, while Cairn Energy was selling a stake in its Indian unit.

The FCA said the trades were made through an overseas asset manager trading on behalf of a company registered in Panama. It previously said that Swiss authorities carried out searches in Switzerland in relation to the case.

A lawyer for Mr. Lyttleton didn't immediately return calls.

Mr. Lyttleton, 45 years old, was arrested along with his wife in April 2013, a month after resigning from BlackRock.

BlackRock isn't part of the investigation and its clients weren't involved, the asset-management company said previously.

No charges were brought against Mr. Lyttleton's wife.

Mr. Lyttleton will be sentenced on Dec. 21. Insider trading carries a sentence of up to seven years in prison in the U.K.

Mr. Lyttleton managed as much as $4 billion for BlackRock clients before his arrest. After leaving the fund group, he became a life coach and mentor, according to his LinkedIn page . On the page, he said being arrested was the low point of his life and that he now wanted to help people "be the best versions of themselves."

Write to Margot Patrick at margot.patrick@wsj.com

Credit: By Margot Patrick

Subject: Investment advisors; Insider trading

Location: United Kingdom--UK

Company / organization: Name: Cairn Energy PLC; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1834871883

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834871883?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Bond Prices Hold Gains After Fed Keeps Rates Unchanged; Oil prices, uncertainty over the presidential election heighten appeal of havens

Author: Goldfarb, Sam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.

ProQuest document link

Abstract:

Government bonds were hit by waves of selling in October in part because of improved global economic data, rising inflation expectations, concern about less bond buying by major central banks and discussion about increased spending from governments that would require more debt issuance.

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U.S. government bonds continued their recent rally Wednesday, benefiting from anxiety over the presidential election as the Federal Reserve stayed on track to raise interest rates in December.

The Fed, as expected, left interest rates steady at the conclusion of a two-day policy meeting. But it sent new signals that it could raise rates next month, pointing to signs that inflation is rising and saying the case for raising rates "has continued to strengthen."

In late-afternoon trading, the yield on the benchmark 10-year Treasury note was 1.799%, compared with 1.822% Tuesday. The yield on the two-year note, which is highly sensitive to changes in the Fed's policy outlook, was 0.821%, compared with 0.829% Tuesday.

Yields fall when bond prices rise.

The Fed's decision was "pretty much as expected," said Mary Ann Hurley, vice president of fixed income trading in Seattle at D.A. Davidson & Co. "We knew that they were going to punt the ball into the December meeting, which is what they did do."

Bond yields moved only a little higher after the Fed's statement, suggesting investors didn't gain much insight into the direction of monetary policy.

Yields, though, had dropped earlier in the day, as investors continued to shift money into haven debt amid signs of a tightening presidential race between the Democratic nominee Hillary Clinton and Republican nominee Donald Trump.

Although Mrs. Clinton was previously expected to win handily, polls have tightened recently, forcing investors to price in the possibility of a victory by Mr. Trump, who is widely viewed as the candidate more likely to bring uncertainty to government policies.

Stocks, which fell last month, have come under further pressure, while bond prices have climbed for three consecutive days after falling sharply last week.

The rationale behind higher yields seemed to be supported earlier this week, when China and the U.S. both reported encouraging manufacturing data. But uncertainty caused by the election is now "counteracting any bright spots that we're seeing in the economy," said Jody Lurie, director in the fixed-income strategy and research department at Janney Montgomery Scott LLC in Philadelphia.

Also providing a boost to bonds has been a decline in oil prices , which has weighed on stock prices and tempered the recent increase in inflation expectations, analysts said.

Investors are looking ahead to Friday's nonfarm payrolls report, which could further bolster the odds of a December rate rise if it shows continued strength in the labor market.

A private survey showed on Wednesday that businesses across the country added 147,000 workers in October, the smallest increase since May. However, the September total was raised to 202,000 from 154,000.

Fed-funds futures, which are used to speculate on central bank policy, showed Wednesday afternoon that investors and traders see a 72% chance of an increase by the conclusion of the Fed's December meeting, according to CME Group. The odds were 74% Tuesday.

Write to Sam Goldfarb at sam.goldfarb@wsj.com

Related News

* The Problem for OPEC in Three Charts

* OPEC Has Been Here Before--in 1986

* OPEC May Give Trump Energy Goals a Boost

* Oil Industry Braces for Peaking Demand

* U.S. Energy Firms Step Up Business Investment

* U.S. Now a Net Exporter of Natural Gas

* Economic Effects of OPEC's Output Decisions

Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon

Subject: Cartels; Agreements; Energy industry

Location: Iraq Russia Iran Saudi Arabia

People: del Pino, Eulogio Rouhani, Hassan Putin, Vladimir

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1843788709

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Last updated: 2017-11-24

Database: The Wall Street Journal

Stocks Pull Back After Rally; Oil Rises; U.S. indexes hit record highs on Friday

Author: Driebusch, Corrie; Gold, Riva

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.

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Abstract:

The gains began before the U.S. presidential election, but accelerated after Nov. 8 as investors poured money into U.S.-based companies.

Links: 360 Link to Full Text

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U.S. stocks slipped Monday, snapping the Russell 2000's longest winning streak in 20 years.

The index of small-company shares rose for 15 consecutive trading sessions through Friday. The gains began before the U.S. presidential election, but accelerated after Nov. 8 as investors poured money into U.S.-based companies. Investors bet that President-elect Donald Trump's policies could improve domestic growth, lower corporate taxes and increase infrastructure spending--which they believe will benefit smaller, domestically focused companies that are typical of the Russell 2000.

On Monday, the index declined 1.3%.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite also edged lower. The declines represent an unusual pullback for U.S. stocks after a weekslong rally that sent all three indexes--plus the Russell--to fresh records again Friday.

For the 12 trading sessions following the U.S. presidential election, the Dow industrials rose 4.5% through Friday and only fell two days.

The blue-chip index declined 0.3% on Monday. The S&P 500 fell 0.5%, and the Nasdaq Composite slipped 0.6%.

Indexes in both Europe and the U.S. were weighed down by falling bank stocks, which have been big winners since the election. Financial companies in the S&P 500 were the worst-performing sector Monday, falling 1.4%.

Ahead of Monday, banks had also posted stand-out performance in recent weeks as investors bet on lightened regulation under President-elect Trump and higher interest rates. On Monday, Russell 2000 component Bank of the Ozarks fell 3.1%. In the past month the bank is up 24%.

Banks in the Stoxx Europe 600 fell 1.8% ahead of a Dec. 4 referendum on Italian constitutional reform .

Many investors are concerned that a "no" vote and the political uncertainty that could follow might derail plans to shore up the country's fragile banking system. Recent polls suggest the proposed changes are likely to be rejected, an outcome that Prime Minister Matteo Renzi has said would prompt him to resign. Italy's FTSE MIB index dropped 1.8%. The broader Stoxx Europe 600 fell 0.8%.

Shares of oil and gas companies also struggled Monday as crude prices swung ahead of a meeting of major oil producers in Vienna. U.S.-traded crude oil gained 2.2% to $47.08 a barrel.

The Organization of the Petroleum Exporting Countries agreed in September to trim production amid a global glut of supply, but left the details of who cuts how much to a meeting in Vienna on Wednesday.

"Speculation that OPEC would agree to production cuts spurred big increases last week, and we'll get this kind of back and forth until we get clarity on what exactly the deal is likely to be," said Ian Williams, strategist at brokerage Peel Hunt.

The U.S. dollar weakened Monday after its best three-week stretch since 2008. Emerging-market currencies and the yen rose sharply against the dollar, sending the WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, down 0.3% on Monday.

Some investors said the pullback in the dollar was likely to prove temporary, with inflation expectations on the rise and the Federal Reserve widely expected to raise interest rates in December and in 2017.

U.S. government bonds strengthened, sending the yield on the 10-year U.S. Treasury note down to 2.319% from 2.359% on Friday.

Earlier, Hong Kong's Hang Seng and the Shanghai Composite advanced 0.5%.

Write to Corrie Driebusch at corrie.driebusch@wsj.com and Riva Gold at riva.gold@wsj.com

Credit: By Corrie Driebusch and Riva Gold

Subject: Interest rates; Stocks; Natural gas utilities; American dollar; Presidential elections

Location: United States--US

People: Renzi, Matteo Trump, Donald J

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1843788877

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843788877?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Industry Anticipates Day of Reckoning; Prospect of 'peak demand' prompts debate and long-term planning by global producers

Author: Kent, Sarah; Spegele, Brian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.

ProQuest document link

Abstract:

Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia--which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices--are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. [...]that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies.

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This month, European oil company MOL Group delivered a stark message to investors: Demand for fuel in its key markets is bound to fall.

So-called peak oil demand is a mind-bending scenario that global producers such as Royal Dutch Shell PLC and state-owned Saudi Aramco are beginning to quietly anticipate. But MOL has a transformation plan that is among the most explicit responses to the trend, indicating how the landscape may change for big energy providers over the next decade.

The Hungarian company is rethinking its traditional focus on fuel supply and shifting investment to petrochemicals, the key ingredient of everyday plastic products and a sector where MOL believes growth will continue even when its fuel business falters.

Although there will still be customers for its fuel, the company reckons demand will soon flatten and then start falling in its Eastern European markets around 2030. "We see that as an inevitability," MOL Chief Financial Officer Jozsef Simola said.

Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia--which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices--are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. They are increasing their investment in petrochemicals, pumping more natural gas, driving down costs and even diversifying into alternative energy sources like solar power.

Last month Shell finance chief Simon Henry caused a stir when he said the company sees oil demand peaking in five to 15 years. Shell's latest published forecasts have consumption flattening toward the end of that period.

State-owned China National Petroleum Corp. quietly issued a report in the summer predicting that China's oil consumption--a major driver of growth in recent decades--will begin to fall by 2030, if not sooner. Global demand is expected to follow suit.

The International Energy Agency, which advises industrialized countries on energy policy, says consumption will continue to rise for decades in its most likely scenario. But that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies. If that happens, oil demand could peak within the next 10 years, the IEA says.

"The question is more a question of when, rather than if," Dominic Emery, BP's vice president for long-term planning and policy, told the Economist Energy Summit in London this month. BP says oil demand could fall by the late 2020s if tougher emissions laws are enacted.

Others don't see peak demand coming so quickly. Exxon expects consumption to grow through 2040, though at a decelerating pace. Likewise, OPEC sees demand continuing to grow beyond 2040, but acknowledges new technologies and efforts to curb climate change could mean consumption peaks within the next three decades.

Still, OPEC mainstay Saudi Arabia, the world's largest exporter of oil, is pushing its state oil company to invest heavily in petrochemical plants around the world. The kingdom is trying to diversify away from oil, publicly list Aramco to raise money for other industries, and build a new base of renewable energy.

Peak demand "will be later than the common dates that are being thrown around, but if it does happen, because we're building multiple engines for the economy and we're planning for an economy beyond oil, we'll be ready," Saudi Arabia's energy minister, Khalid al Falih, told a conference in Istanbul last month.

Timing and preparing for peak demand are critical to companies' fortunes. Energy producers could move too fast to adapt to shifts that are still years away. Or new technologies and policies could leave them vulnerable to changes that happen sooner than expected.

"There's risks on both sides," said Paul McConnell, research director of global trends at Edinburgh-based consultancy Wood Mackenzie.

Shell, Exxon and others are pouring money into natural gas --a less-carbon-intensive fossil fuel they bet will benefit from efforts to curb global emissions. In China, where growing oil demand has supported global markets for years, the state-owned energy giants are aggressively embracing natural gas as a fuel for use in everything from power generation to running cars.

Several of the world's biggest oil companies are also increasing their focus on alternative energy sources like solar and biofuels. France's Total SA has said it wants 20% of its portfolio to consist of low-carbon businesses within the next 20 years. The company hasn't commented on the prospect of peak demand.

Peak demand is already arriving in some regions. In Europe, for instance, the IEA sees consumption most likely falling to 10.8 million barrels a day by the end of the decade from 11.7 million barrels a day in 2015.

Those numbers are driving big changes at companies like MOL.

"To come to a point to say that, wow, maybe the future will be different and maybe we have to prepare ourselves for a different world...that was not easy for guys like myself," said Ferenc Horvath, head of the Hungarian company's refining and petrochemicals business.

Bradley Olson in Houston contributed to this article.

Write to Sarah Kent at sarah.kent@wsj.com and Brian Spegele at brian.spegele@wsj.com

* How Iran, Russia Could Derail Oil-Production Deal

* OPEC May Give Trump Energy Goals a Boost

* U.S. Energy Firms Step Up Business Investment

* U.S. Now a Net Exporter of Natural Gas

* Economic Effects of OPEC's Output Decisions

Credit: Sarah Kent, Brian Spegele

Subject: Natural gas; Oil consumption; Alternative energy sources; Emissions; Climate change; Decades; Fund raising

Location: Saudi Arabia

People: Henry, Simon

Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Saudi Arabian Oil Co; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1843834144

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843834144?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC May Give Trump Energy Goals a Boost; An agreement to cut production could lead to higher global oil prices

Author: Gold, Russell

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.

ProQuest document link

Abstract:

Nonetheless, a coordinated agreement by OPEC, led by Saudi Arabia, to tighten supplies to oversupplied oil markets could provide a windfall for independent oil and gas producers such as Mr. Hamm, and generate momentum for Mr. Trump's energy-independence plans.

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Donald Trump says he plans to make America energy-independent. He may receive an unintended boost this week in the form of an oil production cut by Organization of the Petroleum Exporting Countries, which could raise crude prices.

Mr. Trump has pledged to slash regulations he sees as impediments to U.S. fossil-fuel industries. But, the U.S. has moved closer to energy independence in recent years. Oil imports are down and exports of natural gas and diesel are up. Overall, the net amount of energy brought into the country fell to 11.2% of domestic need in 2015 from 30.1% in 2006, according to Gregor Macdonald, an independent energy analyst.

Energy experts say the biggest barrier to additional increased domestic oil production today is the low price of crude, not red tape.

While the President-elect has certain extraordinary levers he could try to use to raise oil prices--including restricting imports of crude from countries such as Saudi Arabia--the actions could prove politically controversial, and likely to drive up prices at the pump, something politicians are historically loath to do.

However, OPEC, which declined to curtail its output to put a floor on prices two years ago, is now trying to reach an agreement this week in Vienna to cut production as a way to address a continuing imbalance between supply and demand.

That may be a boon for Mr. Trump and U.S. oil and gas producers, who helped create the global glut by using advances in horizontal drilling and hydraulic fracturing to unlock new supplies. Oil companies would be able to clean up damaged balance sheets, and increase the pace of drilling, if an OPEC production cut leads global prices to tick up over $50 a barrel and stabilize.

In a YouTube video last week detailing his plans for his first 100 days in office, Mr. Trump promised to roll back regulations on energy.

"I will cancel job-killing restrictions on the production of American energy, including shale energy and clean coal, creating many millions of high-paying jobs," he said.

While industry officials applaud such measures, many say they need higher prices to kick production into another gear.

"To get the full blown benefit of all the reserves out there, you need a higher and stable price," says Lee Fuller, executive vice president of the Independent Petroleum Association of America.

Although total energy independence may be difficult, if not impossible, for the U.S. to achieve, the country is closer to that goal today than it has ever been since the early 1970s.

In August 2008, the U.S. produced five million barrels a day of crude oil. Eight years later, production was at 8.7 million barrels, according to the latest monthly tally from the Energy Information Administration.

That is down from a peak of 9.6 million barrels daily in April 2015, as domestic oil production has fallen in recent months and imports have risen because lower global oil prices led U.S. producers to idle drilling rigs and cut production budgets.

Still, the strength of American oil production gives Mr. Trump more room to maneuver, and more ability to adopt a foreign policy that challenges Saudi Arabia and the rest of OPEC.

The U.S. boom "offers a grand opportunity to strengthen our ties with our allies and friends and gives us commercial leverage," said Kathleen Harnett White, a former environmental regulator in Texas who is now a policy fellow at the Texas Public Policy Foundation, a conservative think tank based in Austin.

Mr. Trump and his advisers have railed against OPEC.

"He is operating from this widespread view, formed in the 1970s, that OPEC is manipulating the price of oil to the detriment of the U.S.," says Robert McNally, president of energy-advisory firm the Rapidan Group and a former National Security Council adviser for energy under President George W. Bush.

Many people close to the incoming president view Saudi Arabia, a key OPEC member, with distrust. One of Mr. Trump's key energy advisers is Harold Hamm, the chairman and chief executive of Continental Resources Inc. Mr. Trump has praised him as an "amazing friend" and a valuable guide on energy issues.

In an interview earlier in November following Mr. Trump's election, Mr. Hamm suggested a new relationship with America's overseas oil suppliers.

"Some of the countries, Saudi Arabia in particular, have been treated too kindly, because of the large supply of oil," Mr. Hamm said. "I don't think that may be the case in the future."

There is no question that the U.S. has the capacity to ramp up production, if prices support it.

There is a sea of oil, in particular, in West Texas' Permian Basin. The U.S. Geological Survey recently estimated that the area's Wolfcamp Shale held 20 billion barrels of oil. That is three times the size of the Bakken Shale in North Dakota, and the largest continuous oil accumulation ever assessed in the U.S.

At present, operators in the Permian Basin produce about two million barrels a day. Bud Brigham, founder of Brigham Resources LLC, said production could double or triple within a few years.

"It has legs and it has depth," he said. If that were to happen, the U.S. would tilt even further from being an importer to an exporter nation.

In 2008, U.S. oilmen such as Mr. Brigham were just beginning to figure out how to apply hydraulic fracturing technology to the Bakken Shale, the first steps in what has turned into a domestic oil renaissance in the U.S.

Now the limitations are more economic than technological.

Mr. Macdonald said Mr. Trump's vision of energy independence has been largely achieved. "The entire vision of an America as an energy powerhouse that produces more of its own energy, uses more of its own energy and exports the surplus...it is already here," he said.

The Obama administration didn't promote that vision, he added. "The reason America doesn't know that is because of a failure of sales and marketing."

Mr. Trump is pledging to promote U.S. energy output, and OPEC's attempts to raise prices may give him a head start--without tying him to resulting gasoline price increases.

"The popularity of the U.S. president is directly related to the price of gasoline at the pump," said Bill Ritter, a former Colorado governor and director of the Center for the New Energy Economy at Colorado State University. "You are in really dangerous territory if a president impacts it."

Ted Mann contributed to this article.

Write to Russell Gold at russell.gold@wsj.com

Related Coverage

* Oil Industry Braces for Peaking Demand

* How Iran, Russia Could Derail Oil-Production Deal

* U.S. Energy Firms Step Up Business Investment

* U.S. Now a Net Exporter of Natural Gas

* Economic Effects of OPEC's Output Decisions

Credit: By Russell Gold

Subject: Crude oil prices; Supply & demand; Petroleum production

Location: United States--US Saudi Arabia

Company / organization: Name: Independent Petroleum Association of America; NAICS: 813910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1843845522

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843845522?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Firms Anticipate Day of Reckoning

Author: Kent, Sarah; Spegele, Brian

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Nov 2016: A.1.

ProQuest document link

Abstract:

Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia -- which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices -- are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. [...]that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies.

Links: 360 Link to Full Text

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This month, European oil company MOL Group delivered a stark message to investors: Demand for fuel in its key markets is bound to fall.

Peak oil demand -- when global consumption crests and begins a permanent decline -- is a mind-bending scenario that global producers such as Royal Dutch Shell PLC and state-owned Saudi Aramco are beginning to quietly anticipate. But MOL has a transformation plan that is among the most explicit responses to the trend, indicating how the landscape may change for big energy providers over the next decade.

Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia -- which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices -- are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. They are increasing their investment in petrochemicals, pumping more natural gas, driving down costs and even diversifying into alternative energy sources like solar power.

State-owned China National Petroleum Corp. quietly issued a report in the summer predicting that China's oil consumption -- a major driver of global growth in recent decades -- will begin to fall by 2030, if not sooner. Global demand is expected to follow suit.

Still, OPEC mainstay Saudi Arabia, the world's largest exporter of oil, is pushing its state oil company to invest heavily in petrochemical plants around the world.

The kingdom is trying to diversify away from oil, publicly list Aramco to raise money for other business lines and build a new base of renewable energy.

Timing and preparing for peak demand are critical to companies' fortunes. Energy producers could move too fast to adapt to shifts that are still years away. That could hurt them by producing too much of next-generation fuels for which demand isn't yet mature. Or new technologies and policies could leave them vulnerable to changes that happen sooner than expected.

"There's risks on both sides," said Paul McConnell, research director of global trends at Edinburgh-based consultancy Wood Mackenzie.

Shell, Exxon and others are pouring money into natural gas -- a less-carbon-intensive fossil fuel they bet will benefit from efforts to curb global emissions.

Several of the world's biggest oil companies are also increasing their focus on alternative energy sources like solar and biofuels.

Those numbers are driving big changes at companies like MOL.

"To come to a point to say that, wow, maybe the future will be different and maybe we have to prepare ourselves for a different world . . . that was not easy for guys like myself," said Ferenc Horvath, head of the Hungarian company's refining and petrochemicals business.

---

Bradley Olson in Houston contributed to this article.

Credit: Sarah Kent, Brian Spegele

Subject: Alternative energy sources; Supply & demand; Oil consumption

Location: Saudi Arabia

People: Henry, Simon

Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: MOL Group; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Nov 28, 2016

Publisher: Do w Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1843846935

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843846935?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Faith in OPEC Deal Turns Options Traders Into Oil Bulls; Investors have concentrated on contracts that pay out when West Texas Intermediate hits $55 a barrel

Author: Banerji, Gunjan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.

ProQuest document link

Abstract:

While prices of crude futures have been whipsawed by uncertainty ahead of the Organization of the Petroleum Exporting Countries' meeting this week , market participants have built up bullish positions in options.

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Oil prices have jumped 8.7% since Nov. 14 when OPEC said its members agreed to cut output. Options players are betting on another 17% run-up in prices.

As of Friday, traders have concentrated on contracts that pay out when West Texas Intermediate hits $55 a barrel. While prices of crude futures have been whipsawed by uncertainty ahead of the Organization of the Petroleum Exporting Countries' meeting this week , market participants have built up bullish positions in options.

Open interest, or the number of contracts outstanding, of $55 WTI calls that expire in January has nearly doubled in the last month, according to QuikStrike, an options pricing and analysis tool that uses data from CME Group Inc., the world's largest operator of derivatives exchanges.

On the bearish side, investors have coalesced around a strike--the level at which an option can be exercised--of $40, with 26,557 contracts of puts outstanding at that price. That falls short of the 30,254 calls at $55 as of Nov. 25, a level oil hasn't surpassed since July 2015. Overall, calls on crude futures outnumber puts by a ratio of five to four, data show.

"There's a lot of upside trading activity," said Nick Howard, chief executive officer at QuikStrike.

Some investors are using options to bet the swing will be wild, whether up or down, by using a trade known as a straddle, which involves buying both puts and calls, according to Commodity Research Group. "There are so many scenarios that you can think of that are possible" that a bet on futures is too risky, said CRG's Jim Colburn. "Just buy volatility."

Oil market participants have been speculating OPEC, the 14-member cartel that controls one-third of the world's crude production, could strike a deal to slash production. On Nov. 21, Goldman Sachs raised its forecast for oil in the first half of 2017 to an average of $55, citing expectations of lower production.

The open interest in strike prices spanning between $50 and $55 is roughly twice what it normally would be for January and February contracts in WTI and Brent, the U.S. and global benchmarks for oil, respectively, said John Gretzinger, head of energy at INTL FCStone, a financial services firm, noting there has been a lot of hedge-fund and buy-side interest recently.

OPEC members such as Saudi Arabia and Iran have said they want prices to return to a range of $55 to $60 a barrel, a level that would stop the bleeding in their national budgets.

Not all traders and investors are sold on the trade. Analysts at Credit Suisse said if OPEC fails to agree on production cuts, U.S. oil could fall to $35 a barrel at the beginning of next year--a price level at which options players have also increased hedges.

Questions remain over how much OPEC is willing to cut, said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management.

"Unless OPEC can really cut production and deliver on that, we're still a year away from this market getting back into balance," Mr. Haworth said.

The buildup in the options markets ahead of the meeting could lead to a seismic unraveling that adds to selling pressure should OPEC disappoint, Mr. Gretzinger said.

"The stakes are higher," he said. "The positions are bigger than they normally are."

Trading volumes have shot up. The average daily volume of WTI options hit an all-time record on Nov. 15 of about 430,000 contracts traded, according to the CME Group.

While CME launched weekly crude options in 2014, the popularity of these shorter-dated contracts took off this year, said Jeff White, senior director of energy products at CME Group. Weekly crude oil options trading is up 54.5% year-over-year as of Friday, according to CME.

"Weekly options give traders even more granularity around market-moving events," Mr. White said. "More volume stems from increased participants in the oil market in general."

Tim Puko, Benoit Faucon and Georgi Kantchev contributed to this article.

Write to Gunjan Banerji at Gunjan.Banerji@wsj.com

* Traders Bet OPEC Will Tighten Spigots

Credit: By Gunjan Banerji

Subject: Securities prices; Futures; Options markets; Price increases

Company / organization: Name: CME Group; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Credit Suisse Group; NAICS: 522110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844049408

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844049408?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Mom's Big Oil Bet Bites the Dust; Demise of two popular ETNs shows risks of such investments

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.

ProQuest document link

Abstract:

(Nov. 29) One of the stock market's most popular investments--a favorite of "moms and millennials "--is being delisted with an offer of early redemption, showing once again why complicated structured products that promise high returns are best avoided.

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Corrections & Amplifications:

Exchange-Trade Notes sponsored by Credit Suisse are being delisted and shareholders are being offered early redemption on the notes. A Heard on the Street column on Monday said the ETNs are being shut down. Some of the notes may continue to trade over the counter. (Nov. 29)

One of the stock market's most popular investments--a favorite of "moms and millennials "--is being delisted with an offer of early redemption, showing once again why complicated structured products that promise high returns are best avoided.

With the explosion in the number of exchange-traded products, inevitable closures have followed. Some fill no real investor need--whiskey, Mongolia or Nashville, for example. Others just didn't trade enough.

That wasn't the issue for two hugely popular exchange-traded notes by VelocityShares that give investors triple daily exposure to gains or losses in a crude-oil index. The larger of the two, with the ticker symbol UWTI, turned over an astounding half of its shares on typical trading days. In dollar terms last Monday that was as much as Exxon Mobil, the world's largest listed oil company.

But sponsor Credit Suisse will delist both ETNs from the New York Stock Exchange Arca market on Dec. 9 and cease issuing new units. To understand why, consider the difference between ETNs and more numerous exchange-traded funds, or ETFs. An ETN is an unsecured loan to a bank that provides exposure to a specific asset. If you buy and hold the ETN--and no one does--the bank promises to pay you on a specified maturity date-- 2032 in the case of UWTI and DWTI--unless it "accelerates" redemption.

There are multiple problems with products like this. In 2012, Credit Suisse suspended issuance of an ETN that was supposed to produce twice the return of VIX volatility futures. Prices rose to a premium over the notional value of the shares, prompting short sellers to step in on what seemed like a sure bet that the premium would be wiped out. But prices kept rising and forcing short sellers to scramble to buy shares. Prices soared to 90% above their notional value and then collapsed in a matter of days.

Even without such dislocations, a leveraged ETN can be an awful investment. While crude oil has lost around half of its value since February 2012, UWTI is down a whopping 99.6%, undergoing multiple reverse splits to avoid becoming a penny stock.

At least a slow 99.6% loss is better than a quick 100% in event of bankruptcy. Owners of Lehman Brothers ETNs had to get in line with the bank's other unsecured creditors.

So why is Credit Suisse pulling the plug on cheap money it doesn't have to repay for 16 years? Probably because, from a regulatory perspective, it isn't so cheap, especially for a bank that is trying to boost its capital. The bank's hedges, volatile oil derivatives, count toward its risk-weighted assets.

But at least Credit Suisse is repaying the money quickly, which it isn't required to do. When it delisted some ETNs in 2009 , the bank dragged its feet repaying the cash. Regardless, steer clear of this "going out of business sale."

Spencer Jakab

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Stock exchanges; Volatility; Stock market delistings

Location: Mongolia Nashville Tennessee

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Credit Suisse Group; NAICS: 522110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 28, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844049446

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844049446?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

How Iran, Russia Could Derail Oil-Production Deal; OPEC members engage in a last-minute blitz of diplomacy ahead of a meeting on Wednesday

Author: Faucon, Benoit; Kantchev, Georgi; Amon, Michael

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

ProQuest document link

Abstract:

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Some progress was made Monday.

At the same time, Algerian and Venezuelan oil ministers Noureddine Bouterfa and Eulogio del Pino, respectively, flew to Moscow on Monday to try to bring the Russians onboard for a production cut.

Oil prices rose amid the negotiations on Monday, with Brent crude rising 2.2% at $49.31.

"If they are going to cut their production, the Saudis don't want others to replace them," one OPEC official said.

Iran oil minister Bijan Zanganeh told state television that he "hoped oil won't not be used as a political tool" when the group meets Wednesday.

Iran, Iraq and Russia all want prices to rise, but they have fewer incentives to cut production than some others.

"What you're seeing now is horse-trading," Mr. Takin said. "When there is a crisis, OPEC always come together and take action together."

Selina Williams and Kevin Baxter in London contributed to this article.

Write to Benoit Faucon at benoit.faucon@wsj.com , Georgi Kantchev at georgi.kantchev@wsj.com and Michael Amon at michael.amon@wsj.com

Related News

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* OPEC May Give Trump Energy Goals a Boost

* Oil Industry Braces for Peaking Demand

* U.S. Energy Firms Step Up Business Investment

* U.S. Now a Net Exporter of Natural Gas

* Economic Effects of OPEC's Output Decisions

Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon

Subject: Cartels; Agreements; Energy industry

Location: Iraq Russia Iran Saudi Arabia

People: del Pino, Eulogio Rouhani, Hassan Putin, Vladimir

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844105299

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844105299?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Brent Oil Rises Over 2% Ahead of OPEC Meeting; Brent is up 2.1% or $1.00 at $48.24 a barrel

Author: Hsu, Jenny

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

0046 GMT [Dow Jones] Brent oil prices are up in early Asia trade Tuesday ahead of a meeting Wednesday among major OPEC members who are making last-ditch diplomatic efforts to forge an agreement to rein in excess oil supplies. "Saudi Arabia had earlier suggested the group doesn't necessarily need to cut production. However, Iraq's Oil Minister Jabbar al-Luaibi said he's 'optimistic' a deal will be reached at OPEC's summit in Vienna on Wednesday," says ANZ Research, adding that volatility will continue to be high as headlines around OPEC's meeting pushes prices around. Nymex is down 0.5% or 24 cents at $46.84, Brent is up 2.1% or $1.00 at $48.24 a barrel.

Credit: By Jenny Hsu

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844111835

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844111835?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Discord Sends Oil Prices Lower; If cartel decides to abandon its pledge to cut output, analysts say oil prices will be hit hard in the short term

Author: Yang, Stephanie; Baxter, Kevin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

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Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting. "Higher oil prices mean non-OPEC producers will be more encouraged to drill for more oil, which will increase global supply and prices will be depressed again," said Gao Jian, an energy analyst at SCI International.

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Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting.

Anticipation of action to limit output has boosted the crude market in recent weeks. But comments from officials ahead of the meeting sowed doubts over the Organization of the Petroleum Exporting Countries' ability to come to an agreement.

Light, sweet crude for January delivery declined $1.85, or 3.9% to $45.23 a barrel on the New York Mercantile Exchange, its lowest close since Nov. 14. Brent, the global benchmark, settled down $1.86, or 3.9%, at $46.38 a barrel.

A key concern for investors leading up to the meeting has been whether OPEC members Iran and Iraq will cooperate in the planned production cuts. While officials said Tuesday that the two countries have expressed willingness to keep output steady, worries over a potential deadlock are pressuring oil prices.

"With member delegations already gathered in Vienna ahead of [Wednesday's] formal meeting, it is increasingly clear that key divisions still remain," said Robbie Fraser, commodity analyst at Schneider Electric, in a note.

Germany's Commerzbank said the main hurdle for the meeting will be resolving conflicting demands from Saudi Arabia and Iran, with Saudi Arabia's insistence that Iran cap production while Iran seeks an exemption from the cuts.

Other members have expressed mixed feelings going into the meeting, contributing to volatility in the oil market. Sentiment has reversed substantially from a week ago, said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk.

"Wall Street has completely flip-flopped," Mr. Morton said. "I've never seen so many changes in opinion in such a short period of time."

Goldman Sachs analysts said the oil market reflects a 30% probability that the cartel will come to a deal Wednesday. On Tuesday, Macquarie analysts said the probability of a deal has fallen but still expect the cartel to arrive at an agreement.

In September, OPEC agreed on targets that would have translated into production cuts of 200,000 to 700,000 barrels a day. Analysts say that if the Wednesday meeting ends inconclusively, oil prices could fall to as low as $35 a barrel.

"I don't think OPEC can afford a complete fiasco here. If there is one, prices are bound to work lower," said Andy Lebow, senior partner at Commodity Research Group.

Most observers agree that Saudi Arabia wants a swift resolution, but Iran will likely wait until the formal meeting is under way before the country's negotiators show their hand.

Another challenge for the production accord is Russia, which isn't an OPEC member. Russia has indicated it is only interested in holding production at 11.2 million barrels a day. A freeze, it said, is essentially a reduction because it planned to increase output next year.

OPEC will also struggle to nail down production quotas for member nations as several countries, such as Nigeria and Libya, have requested exemptions because their oil production and exports have been hurt by militant attacks. In addition, OPEC doesn't have the authority to make members comply with their production assignments.

If OPEC decides to abandon its pledge to cut output, oil prices will be hit hard in the short term.

However, Bjarne Schieldrop of Swedish bank SEB said the market was likely to shrug off the setback and oil will likely trade back to around $48 a barrel by the end of 2016.

"Higher oil prices mean non-OPEC producers will be more encouraged to drill for more oil, which will increase global supply and prices will be depressed again," said Gao Jian, an energy analyst at SCI International.

In the U.S., where many oil producers were forced out of the market when prices dropped below $40 a barrel, there are signs of resilience. The latest forecasts from the U.S. Energy Department show domestic crude production is likely to hit 8.7 million barrels a day in 2017, 100,000 barrels a day higher than the previous estimate.

Production elsewhere is also climbing. North Sea producers, which have been troubled by rising costs and high taxes, recently increased output to a three-year high. That shows that any OPEC agreement would have a limited impact on the global crude glut, said Hamza Khan, head of commodity strategy at ING Bank.

"The whole concept is so silly," Mr. Khan added. "If one part of the world cuts, supply will come online in other parts of the world...and it will come on very quickly."

Market players will also be following the weekly inventory report from the U.S. Energy Information Administration. Analysts and traders surveyed by The Wall Street Journal expect crude-oil stockpiles to rise on average by 100,000 barrels in the week ended Nov. 25.

The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 700,000-barrel decrease in crude supplies, a 3.3-million-barrel increase in gasoline stocks and a 2.2-million-barrel increase in distillate inventories, according to a market participant.

Gasoline futures settled down 2.5% at $1.3771 a gallon, and diesel futures settled down 3.3% at $1.4627 a gallon.

Write to Stephanie Yang at stephanie.yang@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com

* Saudis Face Tough Choice: Lead Cuts or Walk Away

* Indonesia May Not Join OPEC Production Cuts

* A Six-Day Rally in Natural Gas Pauses

* In Oil, the Big Bet Is on a Big Swing

* OPEC May Give Trump Energy Goals a Boost

* How Iran, Russia Could Derail Oil-Production Deal

* Measuring the Economic Spillover of OPEC's Oil Output Decisions

* OPEC Agrees on Need to Cut Oil Output (Sept. 28)

Credit: By Stephanie Yang and Kevin Baxter

Subject: Crude oil prices; Cartels; Petroleum production

Location: Iran Saudi Arabia

Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844160543

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844160543?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Traders Bet OPEC Will Tighten Spigots --- U.S. price rises to $47 as signs emerge that oil producers are near consensus on cutbacks

Author: Sider, Alison

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Nov 2016: B.12.

ProQuest document link

Abstract:

Members of the Organization of the Petroleum Exporting Countries have been trying for months to strike a deal to reduce output and ease a global glut of crude.

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With OPEC members heading toward a possible showdown this week at their meeting in Vienna, crude prices rallied Monday as traders bet that major oil producers still can reach an agreement to cut production.

U.S. crude futures climbed $1.02, or 2.21%, to $47.08 a barrel on the New York Mercantile Exchange. The global crude benchmark Brent advanced $1, or 2.12%, to $48.24 a barrel on London's ICE Futures Exchange.

Arriving in Vienna, Iraq Oil Minister Jabar al-Luaibi said Monday that he was confident OPEC would reach an agreement this week. Iran and Iraq, which have previously said they want to keep increasing output, indicated in a private meeting Monday they would consider holding production steady, according to a person familiar with the matter.

That is part of what drove prices higher Monday, said John Kilduff, founding partner of Again Capital.

"Iran and Iraq are holding the key to getting a deal done," he said. "Their rhetoric counts right now."

OPEC's output also has continued to climb over the past two months, with many countries pumping more oil even as they discussed freezing or curtailing production. In September, OPEC agreed to target production levels that would have translated into a 200,000 to 700,000 barrel-a-day reduction.

Tariq Zahir, managing member of Tyche Capital Partners, said the group would now have to agree to cut at least one million barrels a day to make a meaningful dent in supply. "I think there's going to be some kind of a deal done to save face," Mr. Zahir said. "But you need to have a serious cut."

Even if OPEC strikes a deal, its impact on prices may be short-lived.

"We may be seeing prices in the low 40s before we see the high 50s," said Mark Anderle, director of supply and trading at TAC Energy.

Gasoline futures rose four cents, or 2.91%, to $1.4127 a gallon. Diesel futures rose 4.28 cents, or 2.91%, to $1.5128 a gallon.

Credit: By Alison Sider

Subject: Cartels; Price increases; Crude oil; Petroleum production

Company: Organization of Petroleum Exporting Countries--OPEC

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.12

Publication year: 2016

Publication date: Nov 29, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844291560

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844291560?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Iran, Iraq Soften on OPEC Production Agreement; Saudi Arabia, however, still may not be satisfied as oil producers prepare to meet in Vienna

Author: Faucon, Benoit; Kantchev, Georgi; Amon, Michael

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

ProQuest document link

Abstract:

In last-minute negotiations, officials said, Iraq has said it would hold its output steady to secure an agreement to bolster oil prices with the Organization of the Petroleum Exporting Countries, the 14-nation cartel that controls a third of the world's crude output. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry.

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Corrections & Amplifications:

Saudi Arabia's energy minister Khalid al-Falih and Iran's Bijan Zanganeh were scheduled to arrive in Vienna for the OPEC meeting on Tuesday. An earlier version of this article incorrectly stated that they were scheduled to arrive on Wednesday.

VIENNA--Iran and Iraq have softened their positions ahead of a crucial OPEC meeting on Wednesday, OPEC officials said, but it may not be enough to satisfy Saudi Arabia's demands for a broad-based oil-production cut .

Iran has told fellow OPEC members it would be willing to freeze its production in early 2017 after clawing back the market share it lost during years of Western sanctions, the officials said.

The

Iraqi and Iranian proposals are being circulated in a briefing paper among OPEC members preparing for a gathering seen as a crucial test of its ability to influence oil markets. The cartel is aiming to cut into a global oversupply of oil that has dragged prices to half their levels of 2014. The proposal would have OPEC cut more than one million barrels a day, or more than 1% of global oil supply.

Iraqi officials didn't respond to requests for comment about the proposals.

OPEC members have expressed mixed feelings ahead of the gathering.

Arriving at his hotel on Tuesday, Iranian Oil Minister Bijan Zanganeh offered no details of what his country was negotiating. He said he wanted OPEC to stick to the agreement struck in September in Algiers, where the cartel said it would cut back production but gave Iran undefined special treatment.

Ecuador's Foreign Minister Guillaume Long said OPEC members agreed on the need to cut production but disagreed "as to how much each country should sacrifice." He said Ecuador was willing to cut its own output and to give Iran and Iraq special treatment.

"Based on my conversations with my colleagues, I feel there is definitely a political will to find a solution," he said.

Saudi Arabian Energy Minister Khalid al-Falih didn't address reporters after arriving in Vienna on Tuesday. On Sunday, he upended expectations for the meeting when he said a production cut may not be needed to rebalance the market. Saudi officials have indicated that they want either a broad-based production cut or no deal at all.

Saudi Arabia has also revived demands toward Iran, which has been trying to negotiate an exemption from cuts. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry.

One OPEC official said Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the tough new stance. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment.

"There seems to be a disconnect among the Saudis," the OPEC official said. "Their guys in Vienna have no mandate to negotiate anything."

Another OPEC official said the Saudis were fully empowered. "The Saudi policy is consistent," this official said.

Saudi Arabia and its Persian Gulf allies Qatar, Kuwait and the United Arab Emirates, don't want to be on the hook for the bulk of oil-output cuts .

The agreement being circulated in Vienna would ask 10 OPEC members to make a 4.5% production cut, the officials said. Libya and Nigeria would be exempted because they are increasing output after civil unrest disrupted their oil industries.

Tehran is close to agreeing to a freeze once it reaches its 3.97 million barrels a day early next year, the OPEC officials said. Iran, OPEC's third-largest producer behind Saudi Arabia and Iraq, says it pumped 3.92 million barrels a day in October. The proposal would allow Iran to reach production levels last seen in July 2005, its highest output before Western sanctions crippled its oil industry.

But that may not fulfill a key demand from Saudi Arabia that OPEC members use independent estimates of their production as the baseline for their cuts, a person familiar with the matter said. Iran's oil production is about 200,000 barrels a day less than its government says, according to independent estimates cited by

Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day. But Iraq said it would only freeze from that level, not cut, the officials said.

Ahmed Al Omran in Dammam, Saudi Arabia, contributed to this article.

Write to Benoit Faucon at benoit.faucon@wsj.com , Georgi Kantchev at georgi.kantchev@wsj.com and Michael Amon at michael.amon@wsj.com

Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon

Subject: Cartels; Quotas; Market shares; Sanctions; Agreements; Petroleum industry

Location: Iran Iraq Saudi Arabia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Econo mics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844293506

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844293506?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Lukoil Profit Plunges as Oil Market Stagnates; Weak oil prices, a lag in export duties, and a fall in production dent earnings

Author: Mills, Laura

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

ProQuest document link

Abstract:

The company said weaker revenue was because of lower crude prices, as well as a lag in rising export duties, which kick in one month after any changes in the oil price and buoyed Russian oil companies' results in the second quarter.

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MOSCOW--Russia's second-biggest oil producer PAO Lukoil said profit plummeted 71% in the third quarter as weak oil prices, a lag in export duties, and a fall in production dented earnings.

Lukoil's net profit dropped to 54.8 billion rubles ($840 million), while revenue was down 11% to RUB1.3 trillion.

The company's earnings before interest, taxes, depreciation and amortization, or Ebitda, dropped 22% to RUB165.9 billion.

Lukoil said hydrocarbon production was down 11% in the third quarter to 2.1 million barrels a day. The company said that was largely the result of declining reserves in Western Siberia, but that it planned to reallocate capital to projects in other parts of Russia.

Capital expenditure was down nearly 16% to RUB120 billion, which the company said was due to completed upgrades on its Russian refineries.

Write to Laura Mills at Laura.Mills@wsj.com

Credit: By Laura Mills

Subject: Corporate profits; Tariffs; Supply & demand

Location: Russia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: Eng lish

Document type: News

ProQuest document ID: 1844325406

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844325406?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Canada Issues Split Decision on Oil Pipelines; Prime Minister Trudeau announces the rejection of the controversial Northern Gateways project but approves expansion of Kinder Morgan pipeline

Author: Vieira, Paul; Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

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[...]Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight.

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Canadian Prime Minister Justin Trudeau turned down a proposed Enbridge Inc. pipeline to the West Coast that had become a flashpoint for protesters, while approving a less controversial expansion of an existing Kinder Morgan Inc. corridor that will offer landlocked oil sands producers access to tidewater.

Mr. Trudeau rejected Enbridge's yearslong attempt to build the Northern Gateway pipeline, which would have carried 525,000 barrels a day of crude oil along 730 miles to the port at Kitimat, British Columbia. The project was widely supported by Canadian oil sands producers, whose only significant export market is the U.S., but faced the kind of fierce opposition from aboriginal and environmental groups that has mounted across North America in recent years.

But the prime minister approved Kinder Morgan's proposed expansion of its Trans Mountain pipeline, which will nearly triple the capacity of an existing pipeline to 890,000 barrels of crude a day at a cost of 5.5 billion Canadian dollars ($4.1 billion).

The project would increase Canadian crude exports to Asia and reduce its dependence on the U.S. market where Canada's oil sells for a substantial discount to global prices. Kinder plans to increase ship loads of crude oil to foreign markets, including China, to 34 ships a month from five now.

The pipeline decisions point to a careful balancing act on energy by the Trudeau government, which has announced plans to levy a nationwide carbon tax that could make it a leader in the global battle against climate change and has pledged to phase out coal-fired power.

But Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight. Instead, he said, Canada needs to work on that transition, while still seeking to tap new markets for its energy exports.

"There isn't a country in the world that would find billions of barrels of oil and just leave it in the ground while there is a market for it," Mr. Trudeau said at a press conference.

A cap on greenhouse gas emissions announced by the province of Alberta will place some limits on oil sands development, he said, and the pipelines won't change that.

The government approved Enbridge's proposed Line 3 project, which aims to replace segments of an existing pipeline connecting Hardisty, Alberta, to Wisconsin. The project has a price tag of C$7.5 billion.

Enbridge and Kinder Morgan were not immediately available for comment.

Write to Paul Vieira at paul.vieira@wsj.com and Chester Dawson at chester.dawson@wsj.com

Credit: By Paul Vieira and Chester Dawson

Subject: Pipelines; Crude oil; Chemical industry; Oil sands

Location: Canada United States--US British Columbia Canada North America

Company / organization: Name: Kinder Morgan Inc; NAICS: 486910, 324110, 211111, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844485495

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18444 85495?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Crude-Oil Stockpiles Seen Up in Week; Gasoline inventories also expected to increase

Author: Yang, Stephanie

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.

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U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal.

Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 100,000 barrels, on average, in the week ended Nov. 25.

Five analysts expect stockpiles to rise and six expect them to decline. Forecasts range from a decrease of 3 million barrels to an increase of 3 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday.

Gasoline stockpiles are expected to show an increase of 1 million barrels on average, according to analysts. Two analysts expect gasoline stockpiles to fall, eight expect them to rise and one expects no change. Estimates range from a fall of 1.9 million barrels to an increase of 2.6 million barrels.

Stocks of distillates, which include heating oil and diesel, are expected to increase by 1 million barrels. Nine analysts expect stockpiles to increase and two expect them to decrease. Forecasts range from a decline of 2 million barrels to a rise of 3.5 million barrels.

Refinery use is seen rising 0.8 percentage point to 91.6% of capacity, based on EIA data. Seven analysts expect a rise, one expects a decline and one expects no change. Two didn't report expectations. Forecasts range from a decrease of 0.7 point to an increase of 2 points.

Write to Stephanie Yang at stephanie.yang@wsj.com

Credit: By Stephanie Yang

Subject: Inventory; Price increases; Supply & demand

Location: United States--US

Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844487162

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844487162?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Month-End Selling, Oil Gains May Pressure Dollar

Author: Fleetham, Jessica

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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0008 GMT [Dow Jones] The EUR/USD (now at 1.0646) seems to have turned to go upside after bottoming out around 1.05 (1.0518 on Nov. 24), says Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan in a morning note.

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1016 GMT Month-end flows are expected to result in dollar selling, which could temper any rally in the U.S. currency, while higher oil prices on the prospect of an OPEC production cut deal could also weigh, analysts say. "Equity managers may well be selling USD," ING analysts say, adding: "we see slightly greater risk on crude's upside, dollar downside." Dollar remains slightly higher for now, however, with EUR/USD down 0.1% at $1.0643, USD/JPY up 0.7% at 113.01 and GBP/USD flat at $1.2491. USD index trades up 0.1%.

Write to jessica.fleetham@wsj.com

Credit: By Jessica Fleetham

Subject: Eurozone; Bond issues

Location: Italy France United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844480210

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844480210?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Canada Issues Split Decision on Oil Pipelines; Prime Minister Trudeau announces the rejection of the Northern Gateways project but approves expansion of Kinder Morgan pipeline

Author: Vieira, Paul; Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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OTTAWA--Canadian Prime Minister Justin Trudeau turned down a proposed Enbridge Inc. pipeline to the West Coast that had become a flashpoint for protesters, while approving a less controversial expansion of a Kinder Morgan Inc. corridor that will boost oil-sands producers' access to export markets.

However, the prime minister approved Kinder Morgan's proposed expansion of its Trans Mountain pipeline, which will nearly triple the capacity of an existing pipeline to 890,000 barrels of crude a day at a cost of 5.5 billion Canadian dollars ($4.1 billion).

The project would increase Canadian crude exports to Asia and reduce its dependence on the U.S. market where Canada's oil sells at a substantial discount to global prices. Kinder plans to increase ship loads of crude oil to foreign markets, including China, to 34 ships a month from five now.

"There isn't a country in the world that would find billions of barrels of oil and just leave it in the ground while there is a market for it," Mr. Trudeau said at a press conference.

A cap on greenhouse gas emissions announced by the province of Alberta will place some limits on oil sands development, he said, and the pipelines won't change that.

Kinder Morgan hailed the decision, saying it expects to start up the expanded pipeline by 2019. "This is a defining moment for our project and Canada's energy industry," said Ian Anderson, president of Kinder Morgan's Canadian subsidiary.

Calgary, Alberta-based Enbridge said it would assess its options for the rejected Northern Gateway pipeline. Meanwhile, the Line 3 approval should allow it to start work in 2019, two years later than it originally had planned. "This approval today is an important milestone and brings us one step closer to making this important project a reality," a company spokesman said.

Canada's largest oil producer, Suncor Energy Inc., said it was pleased with the decision on pipeline expansion and disappointed by the decision to reject the third proposal. "Projects such as Northern Gateway, which allows for Canadian resources to access global markets, are a good thing not only for crude producers and marketers, but also the Canadian economy," the Calgary-based company said in a statement.

The approval of Trans Mountain, along with an earlier decision this fall to green light a natural-gas plant in British Columbia, could go some way to allaying concerns in the energy patch that the Liberal government's climate policy will make it harder to get projects approved.

But the incoming U.S. administration of President-elect Donald Trump could complicate the Trudeau government's efforts to balance its environmental agenda with the building of pipelines.

Mr. Trudeau didn't directly answer a question at the press conference about whether he would talk to Mr. Trump about reviving the Keystone XL project. Mr. Trump has signaled support for the project, which Canada already has approved but which needs a U.S. presidential permit to move forward. Approval for Keystone XL would further ease the bottleneck on Alberta's landlocked oil sands, but could create a political problem for Mr. Trudeau in his quest to reduce carbon emissions.

Limited access to global markets for Canada's crude oil has hurt the industry for years, contributing to Canada's oil trading at a discount. Better market access would result in lower transportation costs and could be an incentive to boost oil sands output at a time when the oil sands' production growth is being crimped by high extraction costs and concerns about its higher greenhouse-gas emissions.

The government of oil-rich Alberta province welcomed the announcement. "We're getting a chance to sell to China and other new markets at better prices," said Alberta Premier Rachel Notley. She added Alberta would sign on to a federal initiative to institute a nationwide carbon tax that would hit C$50 a ton by 2022. Alberta held off on endorsing that plan of Mr. Trudeau's while Ottawa debated the fate of the proposed pipelines.

Enbridge's proposed Gateway corridor had faced fierce opposition, generating debate akin to the fight over Keystone XL in the U.S.

The Trans Mountain project wasn't expected to generate as much controversy because it follows an existing crude oil pipe that has been shipping oil from northern Alberta to the coast of British Columbia for decades.

But the proposal in 2013 to complete that "twinning" of the line to the coast of British Columbia set off a firestorm of protest, primarily in Vancouver, a birthplace of the modern environmental movement. The most contentious part is the last mile, which runs through a wealthy and leafy suburban area at the base of Burnaby Mountain.

Tim McMillan, the head of the Canadian Association of Petroleum Producers, said the Northern Gateway pipeline had the backing of the industry, although its rejection was "consistent" with previous comments from Mr. Trudeau. He lauded Ottawa's support for the other two pipelines, saying it signaled Canada is serious about becoming a global energy supplier.

"The approvals of the two pipelines today are a step forward," Mr. McMillan told reporters, adding it could prompt oil-sands producers to move forward on new projects.

Write to Paul Vieira at paul.vieira@wsj.com and Chester Dawson at chester.dawson@wsj.com

* Canada Names Panel to Help Revamp Energy Regulator

* Enbridge, Canada Won't Appeal Court Ruling on Northern Gateway

* Canada Names Panel to Help Revamp Energy Regulator

Credit: By Paul Vieira and Chester Dawson

Subject: Pipelines; Exports; Environmental policy; Climate change; Energy industry; Prime ministers; Press conferences

Location: Canada United States--US British Columbia Canada

Company / organization: Name: Kinder Morgan Inc; NAICS: 486910, 324110, 211111, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844484645

Document URL: https://login.ezproxy.uta.edu/login?url=https://search.proquest.c om/docview/1844484645?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Prices Edge Up Ahead of OPEC Meet; Brent is up 17 cents at $46.55 a barrel

Author: Hsu, Jenny

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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0105 GMT [Dow Jones] Oil prices are marginally higher in early Asia trade after Iran and Iraq indicate they would be willing to hold their production levels steady as part of an OPEC production cut agreement. The development, however, is still a step away from Saudi Arabia's demand for a broad-based production cut. The meeting in Vienna is expected to commence late afternoon Asia time today and the OPEC secretary-general is scheduled to hold a press conference late at night Asia time. "Oil remains susceptible to further falls as OPEC members struggle to reach an agreement over production cuts," says ANZ Research. Nymex oil prices are up 22 cents at $45.45 a barrel. Brent is up 17 cents at $46.55 a barrel.

Write to Jenny Hsu at jenny.hsu@wsj.com

Credit: By Jenny Hsu

Subject: Cartels; Crude oil prices; Price increases

Location: Iran Asia Iraq Saudi Arabia

Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844484761

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844484761?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Treasurys Pull Back on Rising Oil, Strong Data

Author: Goldfarb, Sam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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Gross domestic product in the three months ended Sept. 30 likely rose 7.5% from a year earlier, according to the median estimate of 14 economists polled by The Wall Street Journal.

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US government bond selloff resumes as traders react to surging oil prices and solid US economic data.

Rising oil prices, fueled by optimism about an OPEC production cut, is a boost to inflation expectations.

Meanwhile, data on private-sector employment and personal incomes point again to a brightening economic outlook, providing investors with more reason to dump haven debt.

The 10-year yield was recently 2.359% vs. 2.305% Tuesday.

Write to Sam Goldfarb at sam.goldfarb@wsj.com

Credit: By Sam Goldfarb

Subject: Banking industry

Location: Indonesia Singapore India China Japan Asia Malaysia Hong Kong South Korea

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844485113

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Last updated: 2017-11-23

Database: The Wall Street Journal

Asian Shares Mixed on OPEC Worries; Energy stocks were the key decliners after oil prices plunged to a two-week low

Author: Erheriene, Ese

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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Stock markets in Asia were mixed Wednesday, as a positive lead from Wall Street was offset by investor concerns that key oil-producing nations won't be able to seal a deal to cut global production.

Japan's Nikkei Stock Average closed flat, after earlier opening at its highest level in two days, while Hong Kong's Hang Seng Index closed up 0.2%, and South Korea's Kospi finished up 0.3%. By contrast, the Shanghai Composite Index was off 1% and Australia's S&P/ASX 200 ended 0.3% lower.

Energy stocks were the key decliners, after oil prices plunged to a two-week low on Tuesday. There were mounting doubts that members of the Organization of the Petroleum Exporting Countries could reach a deal to cut output in the heavily oversupplied market, when the oil cartel meets later on Wednesday.

"There is a diminished outlook for any agreement that can surface from this OPEC meeting," said Woon Tian Yong, an investment analyst at Phillip Futures, noting that the failure of an agreement is being priced into energy stocks.

"The really big surprise is if there is an agreement from this meeting, then we can expect to see the S&P 500 be lifted by this," he said.

Stock markets in oil-reliant economies took a hit. In addition to Australia's weakness, the FTSE Bursa Malaysia Index was down 0.3%. Among individual stocks, Australia's Woodside Petroleum fell 2.4%, Japan Petroleum Exploration slid 3.3% and PetroChina was off 1.3% in Hong Kong.

In South Korea, shares of Samsung Electronics ended up 4.1%, putting the country's biggest and most influential stock at an all-time closing high.

The gains come a day after the smartphone maker introduced a bundle of shareholder-friendly measures, including increased dividends and buybacks, changes to the board of directors and a promise of changes to the structure of the broader Samsung conglomerate.

While the measures fell short of what prominent Samsung shareholder Elliott Management had asked for, the U.S. activist hedge fund said that the measures were "a constructive initial step."

Elsewhere, a sharp fall in steel and iron-ore futures prices in China --amid curbs on trading introduced by local exchanges to stop speculative trading--sent shares of local metals producers sharply lower on Wednesday. A recent rally in metals prices that gathered momentum following Donald Trump's win in the U.S. elections was largely driven by Chinese speculative investors, analysts and traders say.

In mainland China, shares of Wuhan Iron & Steel Co. fell 1.7%, while in Hong Kong, shares of Angang Steel Co. dropped 4.4% and Maanshan Iron & Steel declined 1.4%.

Meanwhile, strength in other markets came as all three main U.S. stock indexes ended in positive territory on Tuesday, with gains in health-care stocks overriding declines in energy shares.

Additionally, solid growth and consumer confidence data overnight fueled hopes for stronger U.S. economic expansion, buoying investor confidence in Asian exporters.

On Tuesday, the U.S. Commerce Department reported a key measure of after-tax earnings across U.S. corporations rose 5.2% in the third quarter from a year earlier. The report also showed that gross domestic product expanded at an inflation- and seasonally-adjusted annual rate of 3.2% in the third quarter, its strongest level in two years.

More broadly, the outflows in emerging-market equities since the U.S. presidential election on expectations of higher interest rates under President-elect Donald Trump have taken a pause.

Client flows have recently slowed for some fund managers, though the market is expecting further outflows, analysts say.

"Everybody is waiting for the big retracement that is not coming," said Tareck Horchani, deputy head of Asian-Pacific sales trading at Saxo Markets.

"With the rates higher, with the outflows in [emerging markets], they're waiting for a bigger selloff in equities," he said.

Ben Leubsdorf, Jonathan Cheng, Biman Mukherji and Kosaku Narioka contributed to this article.

Write to Ese Erheriene at ese.erheriene@wsj.com

Credit: By Ese Erheriene

Subject: Stock exchanges; Securities markets; Agreements; Investments; Stockholders

Location: Australia Japan United States--US Asia South Korea Hong Kong

People: Trump, Donald J

Company / organization: Name: Wuhan Iron & Steel Co; NAICS: 331110; Name: Woodside Petroleum Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844485315

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844485315?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Soars as OPEC Agrees to Cut Output; Percentage gains for U.S. crude, Brent were highest since February.

Author: Puko, Timothy; Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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[...]many market observers have been predicting that oil supply and demand will come into balance next year even if major producers kept pumping at these high levels. Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said.

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Oil prices surged more than 9% Wednesday, as investors hoped a deal clinched by major oil-producing nations would help oil prices break out from a punishing slump that has lasted more than two years.

After weeks of doubt that members of the Organization of the Petroleum Exporting Countries could resolve their differences, the agreement in Vienna on Wednesday seemed to surprise many investors. The percentage gains were the biggest for U.S. and international crude prices since February, jolting a market toward the top of a range where it has been stuck for several months.

The Brent global benchmark broke above $50 a barrel for the first time in a month, while U.S. crude futures rose 9.3% to $49.44.

Some investors remain skeptical that the deal will bring a meaningful supply reduction to a world awash in oil. But many market observers have been predicting that oil supply and demand will come into balance next year even if major producers kept pumping at these high levels. Now, some investors say the OPEC deal will likely accelerate that process.

"This is going to be the event that signals the recovery," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston.

OPEC members agreed to cut production by 1.2 million barrels a day from the current 33.6 million barrels, which would erase about 1% of global output. OPEC also expects producers from outside the cartel, including Russia, to join with additional cuts totaling 600,000 barrels a day.

There are other recent signs that supply may be coming down. The U.S. Energy Information Administration reported Wednesday that domestic stockpiles shrank by 884,000 barrels last week, ending a three-week string of additions that included the biggest weekly U.S. crude surplus on record.

U.S. crude production is down 9.5% from last year's peak even with a recent uptick. Major global companies have cut investment by $125 billion annually, Mr. Pickering said.

Energy Aspects, a London-based consultancy, said the deal could keep prices steadily above $60 a barrel by the first quarter of 2017.

That would only get prices back to roughly half their levels in 2014, and other investors weren't as bullish. Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said. "You're starting from a very oversupplied market," said Sarah Emerson, a principal at ESAI Energy LLC in Boston. "You're going to chip away at some of that inventory surplus but you're not going to chip away at everything,"

Despite Wednesday's gains, many traders say they are skeptical that the six-month agreement will be extended and how it will be enforced. OPEC members have a history of cheating and exceeding their own production quotas. So even if the deal cuts deep and the agreement is firm, it may be months before its impact on the market, if any, becomes clear, some money managers said.

If the agreement isn't continued, supply could surge again by the middle of the next year, leaving the market little changed, said Greg Sharenow, portfolio manager at Pacific Investment Management Co., which manages $1.5 trillion, including $13 billion in commodities.

"It looks to me the headlines are overstating the real implications," Mr. Sharenow said. "This deal overall is still quite positive. But there are things that have to be thought about."

U.S. producers are the biggest threat to the deal, according to Jason Bordoff, director of Columbia University's Center on Global Energy Policy. He said U.S. shale drilling could rise to fill the gap. The U.S. rig count has increased steadily as prices stabilized in recent months, suggesting that companies could soon begin pumping more oil. Some U.S. producers have cut costs and can get by producing at prices even below $50 a barrel.

OPEC's action, he added, "may well prove to underestimate U.S. shale."

The deal represents a reversal from November 2014, when the group essentially lifted all output quotas so its members could compete with a global boom in oil production. That decision led OPEC to record-high production, adding more supply to an already flooded market and eventually dropping prices below $30 a barrel, so low that many worried they could fuel a global recession.

Cutting back now, especially if Russia and other international rivals join OPEC, could solve one of the market's biggest problems in recent weeks, another surge in global output. OPEC and Russian production grew to records this autumn, and U.S. production ended a long, slow decline, trends that briefly sank oil to two-month lows.

That had forced OPEC to act this time after failing to act earlier this year, analysts said. It also ended speculation about whether OPEC could agree to work together after nine months of on-and-off-again negotiations.

"It's a strong move, I think it should be respected," said Vincent Elbhar, managing partner of GZC Investment Management in Switzerland, though he added "I feel it's kicking the can a bit."

Sarah McFarlane and Benoit Faucon contributed to this article.

Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com

* OPEC Reaches Deal to Cut Oil Production

* The OPEC Deal - At a Glance

* Cut Could Give Lifeline to U.S. Shale Producers

* Pact Could Be a Boon to World Economy

* Stocks End Month With Gains

Credit: By Timothy Puko and Alison Sider

Subject: Crude oil prices; Supply & demand; Agreements; Petroleum production

Location: United States--US

Company / organization: Name: Tudor Pickering Holt & Co LLC; NAICS: 523110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publicationdate: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844532284

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844532284?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street J ournal

Doubts on OPEC Supply Cut Sink Oil

Author: Yang, Stephanie; Baxter, Kevin

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Nov 2016: B.1.

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Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting.

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Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting.

"With member delegations already gathered in Vienna ahead of [Wednesday's] formal meeting, it is increasingly clear that key divisions still remain," Robbie Fraser, commodity analyst at Schneider Electric, said in a note.

"Wall Street has completely flip-flopped," Mr. Morton said. "I've never seen so many changes in opinion in such a short period of time."

"I don't think OPEC can afford a complete fiasco here. If there is one, prices are bound to work lower," said Andy Lebow, senior partner at Commodity Research Group.

Another challenge for the production accord is Russia, which isn't an OPEC member. Russia has indicated it is only interested in holding production at 11.2 million barrels a day.

Credit: By Stephanie Yang and Kevin Baxter

Subject: Crude oil; Commodity prices

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2016

Publication date: Nov 30, 2016

column: Commodities

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844544562

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Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Inches Closer to Output-Cut Deal; Representatives still trying to resolve dispute raised by Iraq over how each country's oil production is calculated

Author: Faucon, Benoit; Kantchev, Georgi

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

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Ahead of the meeting, Saudi Arabian Energy Minister Khalid al-Falih--whose country is OPEC's largest producer--said that if the cartel is able to reach an agreement, it would reach out to non-OPEC oil producers to try to secure their cooperation in limiting global production.

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VIENNA--OPEC representatives edged closer to a deal that would cut the cartel's oil production by more than 1 million barrels of oil a day in order to boost sagging crude prices, people familiar with the group's talks said Wednesday.

Delegates from members of the Organization of the Petroleum Exporting Countries are discussing a deal here that would cut production to 32.5 million barrels a day from 33.6 million, the people said, a reduction that would represent about 1% of global output. The group is still trying to resolve a dispute raised by Iraq over how each country's oil production is calculated, they said.

Oil markets rallied Wednesday, with Brent crude futures jumping more than 8%.

If OPEC fails to finalize an agreement at the meeting in Vienna, which follows months of negotiations on an output agreement, world oil prices would eventually recover from their current levels, he said. "I am not concerned about a no-agreement scenario," he said.

OPEC members expressed optimism that they could reach an agreement in the run-up to the meeting, which has become a test of OPEC's ability to influence oil markets. At a time when crude is trading at less than half of 2014 prices, OPEC challenges including a Saudi hesitancy to sacrifice market share and reluctance by members including Iran, Iraq and Nigeria--which are recovering from output interruptions--to curb production have made a deal tough to finalize.

Iran's oil minister Tuesday night he believed OPEC would clinch an agreement amid signs that his country and Iraq were looking for a compromise that satisfies Saudi Arabia's demand for a broad-based cut.

"I have good expectations for the meeting," Iranian oil minister Bijan Zanganeh said, nodding when asked if proposals circulated on Tuesday night were acceptable to his country.

In late negotiations, officials said, Iraq said it would curb output to secure an agreement.

Iran has told fellow OPEC members it would be willing to restrict its production in early 2017 after clawing back the market share it lost during years of Western sanctions, the officials said. Mr. Zanganeh on Wednesday said his country wouldn't agree to stop ramping up production in the short term though.

It isn't clear how Saudi Arabia will react. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry.

On Sunday, Saudi Arabian Energy Minister Khalid al-Falih upended expectations for the meeting when he said a production cut may not be needed to rebalance the market. Saudi officials have indicated that they want either a broad-based production cut or no deal at all.

Indonesian oil minister Ignasius Jonan said Wednesday that there were still issues to resolve that wouldn't be easy.

One OPEC official said Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the country's new stance. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment.

Saudi Arabia and its Persian Gulf allies Qatar, Kuwait and the United Arab Emirates don't want to be on the hook for the bulk of oil-output cuts .

Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day. But Iraq said it would only freeze from that level, not cut, the officials said.

Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com

* Crude Price Jumps Amid Vienna Talks

* Global Stocks Set to Close Out Solid Month

Credit: By Benoit Faucon and Georgi Kantchev

Subject: Cartels; Market shares; Agreements; Petroleum production

Location: Iraq Iran Saudi Arabia

People: Mohamed bin Salman, Prince of Saudi Arabia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844549099

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844549099?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Reaches Deal to Cut Oil Production; Cartel representatives agree to cut output by 1.2 million barrels a day

Author: Faucon, Benoit; Kantchev, Georgi

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

ProQuest document link

Abstract:

VIENNA--OPEC representatives reached a deal to cut oil production after months of wrangling Wednesday, in an effort to lift sagging prices and reassert the cartel's influence over a market increasingly dominated by the U.S., Russia and others.

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Delegates from the Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels a day to 32.5 million, Iranian Oil Minister Bijan Zanganeh said, representing about 1% of global production.

Brent crude, the global benchmark that had soared in anticipation of a deal, extended earlier gains , trading 8.5% higher at $51.36. West Texas Intermediate crude oil was up 8.1% at $48.92.

OPEC members have said they were targeting prices as high as $55 to $60 a barrel, levels that would boost petroleum-dependent economies that have been badly damaged by two years of prices often below $50 a barrel.

The breakthrough comes after months of on-and-off-again negotiations that made many traders doubt an agreement could be reached. As recently as Tuesday, oil prices tumbled on market skepticism that clashing OPEC members and other major oil producers could come together on a meaningful deal.

"It's a good day for the oil market, it's a good for the oil industry," said Saudi Energy Minister Khalid al-Falih. "Our friends from Russia and other non-OPEC countries have agreed to reciprocate and contribute significant volumes of cuts starting in January next year."

Under the deal, Iran will be allowed to raise production to 3.9 million barrels a day, Mr. Zanganeh said, as the country claws back the market share it lost during years of Western sanctions . Iran has told fellow OPEC members it would be willing to restrict its production in early 2017.

Saudi Arabia will cut production to 486,000 barrels a day, while Iraq, which had expressed reluctance to sacrifice market share, will reduce output by 210,000 barrels a day. Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day, officials said.

A deal to cut more than 1 million barrels a day could keep prices steadily above $60 a barrel by the first quarter of 2017, according to London-based Energy Aspects. That would accelerate the end of a glut that has been slow to come for more than two years after the development of shale drilling and oil-sands production in North America.

Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the country's new stance, according to one OPEC official. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment.

Tehran was close to agreeing to a freeze once it reaches 3.97 million barrels a day early next year, OPEC officials said. Iran says it pumped 3.92 million barrels a day in October. The proposal would allow Iran to reach production levels last seen in July 2005, its highest output before Western sanctions crippled its oil industry.

Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com

Credit: By Benoit Faucon and Georgi Kantchev

Subject: Cartels; Petroleum industry; Petroleum production

Location: Iran Russia United States--US

People: Mohamed bin Salman, Prince of Saudi Arabia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844601621

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844601621?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Oil Inventories Fall, Fuel Supplies Jump; Crude-oil stockpiles declined by 884,000 million barrels, the EIA said

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

ProQuest document link

Abstract:

U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 25, while fuel supplies surged, according to data released Wednesday by the Energy Information Administration.

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U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 25, while fuel supplies surged, according to data released Wednesday by the Energy Information Administration.

Crude-oil stockpiles declined by 884,000 million barrels to 488.1 million barrels, but are near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 100,000 barrels on the week.

Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 2.4 million barrels to 61.5 million barrels, the EIA said in its weekly report.

Gasoline stockpiles increased by 2.1 million barrels to 226.1 million barrels. Analysts were expecting gasoline inventories to rise by just 1 million barrels from the previous week.

Distillate stocks, which include heating oil and diesel fuel, increased by 5 million barrels to 154.2 million barrels, and continue to be "well above" the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by a much smaller 1 million barrels from a week earlier.

Refining capacity utilization surprisingly fell by 1 percentage point from the previous week to 89.8%. Analysts were expecting utilization levels to rise by 0.8 percentage point.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Supply & demand; Price increases

Location: United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844613192

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844613192?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Deal Could Be a Boon to World Economy Amid Shifting Dynamics; Traditional economics says oil-price increases hurt global growth, but this time may be different

Author: Talley, Ian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.

ProQuest document link

Abstract:

Traditional economics says a boost in oil prices--they rose more than 9% to over $49 a barrel Wednesday after the Organization of the Petroleum Exporting Countries agreed to cut output --is bad for global growth because it erodes consumer buying power, especially in the world's largest economies.

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The world's oil cartel may have just done the global economy a big favor.

But that view is built on experiences of the past. This time may be different, given changing dynamics in the world economy.

"Higher oil prices are good for growth," said Jeffrey Currie, head of commodity research at Goldman Sachs.

First, higher prices should help stimulate growth in the world's largest economic engine, the U.S. It is one of the top three oil producers in the world, pumping more than nine million barrels a day, or 10% of global consumption. As prices fell over the last two years, investment in the sector pulled back and output sank by roughly a million barrels a day.

But as prices picked up in recent months in anticipation of an OPEC deal, investment in the industry has risen. That should help push down unemployment further, pressure wages and fuel the U.S. economic expansion.

More broadly, high crude prices will help a swath of economies hurt by the two-year price plummet. Russia, Brazil, producers in the Middle East and North Africa and Nigeria--Africa's largest economy--have all been suffering with increasing budget deficits and rising debt. The price collapse forced all of them to slash government spending--a primary driver of economic growth in most--and tilted some countries into recession. Their woes added to the headwinds facing the global economy.

Currency values--an early indicator of economic health--rose in a host oil-exporting nations around the world Wednesday, with the Russian ruble, Mexico's peso and Canada's dollar all seeing gains.

Higher energy costs could also counter the scourge of weak consumer-price growth in the U.S., Europe and Japan.

"I see higher oil prices as confirming the end of deflation in most countries, even possibly Japan," said Marc Chandler, head of currency strategy at Brown Brothers Harriman.

Beyond the straightforward economic gains, Goldman Sachs's Mr. Currie argued that an evolved global financial system upends the conventional view that higher oil prices harm the global economy. That thinking is based on the price increases of the 1970s, when higher crude costs caused a massive wealth transfer from rich economies to emerging-market exporters. Those higher-saving nations had a lower tendency to consume. And advanced economies had to less in their pocketbooks to spend on other goods and services. Combined, those factors slowed global growth.

But now, those exporting nations pour their cash back into rich economies. Unlike the 1970s, more sophisticated financial markets "were able to transform this excess savings into greater global liquidity that increased asset values, lowered interest rates, and improved credit conditions that spanned the globe," said Mr. Currie.

As prices rise, that will juice the amount of cash and investment available globally.

Furthermore, oil prices should remain range bound, putting oil within levels that could prove optimal for the global economy.

Many economists say OPEC's decision--if it proves a credible deal that cuts output--could push oil prices to a range of around $55 to $70 a barrel.

"Most participants would say that around $60 a barrel would be a sweet spot," says Deutsche Bank Securities analyst Ryan Todd. "It's not high enough to really hurt global economies, but it's high enough for most producers to sustain a relatively attractive business model, and an attractive price for U.S. refiners."

Even if OPEC delivers an effective cut of around 500,000 barrels a day--including the possibility of members producing over their agreed-to quotas--prices could still move into the low-to-mid $50 range, some analysts say.

That would put prices into a "Goldilocks equilibrium," says Frank Verrastro, a top energy expert at the Center for Strategic and International Studies. That is a price balance-point "sufficient to bring in additional revenues and potentially draw down the excessive stock overhang without significantly eroding consumer demand."

To be sure, if prices go too high--surging past $80 and into the $100 range, they could hurt world growth.

Before the 2008 financial crisis, when rich nations were booming and China's double-digit growth fueled an 8% growth rate in emerging markets, the global economy could happily cope with $100-a-barrel oil. Now, such a boost could curb consumer spending while policy makers are still struggling to spur demand for other goods and services and trade is in long-term slump.

Write to Ian Talley at ian.talley@wsj.com

* OPEC Reaches Deal to Cut Oil Production

* Oil Soars as OPEC Agrees to Cut Output

* Cut Could Give Lifeline to U.S. Shale Producers

* The OPEC Deal: At a Glance

Credit: By Ian Talley

Subject: Crude oil prices; Economic growth; Cost control

Location: United States--US

Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 30, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844695584

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844695584?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Surges on OPEC Deal to Cut Production; Cartel representatives agree to reduce output by 1.2 million barrels a day

Author: Faucon, Benoit; Kantchev, Georgi

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

(Nov. 30, 2016) VIENNA--OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.

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Corrections & Amplifications:

Saudi Arabia will cut its oil production by 486,000 barrels a day under the OPEC agreement. An earlier version of this article incorrectly said it would cut its production to 486,000 barrels a day. (Nov. 30, 2016)

VIENNA--OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.

The Organization of the Petroleum Exporting Countries said Wednesday that it would cut production by 1.2 million barrels a day from 33.6 million barrels and said it expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day.

The OPEC cuts were deeper than many analysts had expected, amounting to about 1% of global production. The 14-member group hopes the output cuts will help shrink a supply glut that has been fed in part by the U.S. shale boom, and has depressed oil prices for more than two years.

At the same time, the pact benefits the shale producers, giving them an incentive to ramp up production--a move that could potentially bring a halt to any oil-market rally.

Oil prices surged and shares of more than 50 U.S. exploration-and-production companies climbed more than 10% following the agreement.

Crude for January delivery climbed $4.21, or 9.3%, to settle at $49.44 a barrel, on the New York Mercantile Exchange. Brent crude, the global benchmark, gained $4.09, or 8.8%, to $50.47, on ICE Futures Europe. Both finished at a one-month high.

The biggest gainers in energy stocks were generally those operating in regions that have been uneconomical to drill for much of the past two years. The S&P 500's energy sector advanced 4.8%.

Still, questions remain about the long-term impact of the deal and the ability of the group to enforce the cuts. The group has a checkered history of complying with its own agreements, with countries often producing more than their agreed-upon share. Analysts said oil traders would watch the agreement warily in the coming weeks.

The Qatari oil minister said a committee of Algeria, Venezuela and Kuwait will monitor compliance with the agreement, though he didn't specify how noncompliance would be defined, deterred or punished.

For a cartel that had been declared all but dead, Wednesday's deal was a reminder of the power wielded by a group that controls a third of the world's crude. Almost exactly two years after it decided to let prices slip into a free fall, the group finally acted, pressured by low prices and domestic fiscal demands to overcome bitter divisions, including those between Iran and Saudi Arabia, the group's de-facto leader.

The member countries were faced with a "very deep" abyss of low oil prices, and that won out over politics, said Daniel Yergin, vice chairman of IHS Markit and a longtime oil-market watcher. "OPEC is back in business," Mr. Yergin said in an interview. "This will rank as one of their historic decisions."

Saudi Arabia and Iran, whose differences blocked a deal that aimed to freeze production earlier this year, made the deal possible by coming to a tortured compromise on production figures. Iran was allowed to increase its production by 90,000 barrels a day, a significant victory for the Islamic Republic as it tries to rebuild its economy after the end of Western sanctions.

But the deal allows both Iran and Saudi Arabia to claim a win, by pointing to different sets of numbers. Iran, using production figures generated by OPEC, can say it is raising output, while Saudi Arabia can point to the Islamic Republic's output figures and say that Iran is agreeing to a cut.

"It's a good day for the oil market, it's a good day for the oil industry," Saudi Arabian Energy Minister Khalid al-Falih said after the deal was reached.

He said the deal, in which the Saudis agreed to take on the highest burden of cuts at 486,000 barrels a day, "is not only what we wanted, but what the market wanted."

Saudi Arabia did succeed in wringing a rare concession from a non-OPEC member in Russia. Just after OPEC sealed the deal, Mr. Falih called Russian Energy Minister Alexander Novak and asked for confirmation of a production cut. Russia said it would move to cut 300,000 barrels a day.

Saudi Arabia's support for cuts was a reversal from a position it has held through most of the price rout, as it sought to keep output high and fight for market share around the world. As a low-cost producer, it said it could live with low prices, while higher-cost producers like the U.S. would be forced out.

But while U.S. production did decline, shale producers proved more resilient than many had expected. Harold Hamm, chairman of Continental Resources Inc. and an energy adviser to President-elect Donald Trump, said Wednesday that U.S. oil production will rise in the wake of OPEC's cut, although it may take more than a year to see it.

Mr. Hamm said producers, including Continental, will unlock some of the thousands of drilled wells in the U.S. that haven't been pumped yet. "With the 1.2 million-barrel-per-day-less production, certainly it will pull that overhanging inventory down pretty quickly," he said.

Saudi Arabia's support of a deal that will help the U.S. producers it believed would be killed off by the rout shows how badly the kingdom now needs oil prices to rise. Its government has embarked on a plan to diversify its economy that includes a proposal to list its state-owned energy giant, Saudi Arabian Oil Co., in 2018.

But income from oil sales still accounts for more than two-thirds of the country's budget revenue. Analysts estimate Saudi Arabia needs oil at about $70 a barrel to break even this year, after the kingdom posted a record budget deficit of $98 billion in 2015.

That isn't a price most analysts believe will be reached this year, as even with the production cuts and some demand growth, there is a substantial inventory of oil stored around the world.

OPEC members have said they are targeting prices as high as $55 to $60 a barrel, a level that would boost petroleum-dependent economies badly damaged by two years of prices that were often below $50 a barrel, and would provide some relief for energy companies that have been battered by the price drop.

Such a level is widely viewed as a sweet spot for oil prices, because economists say it is still low enough to support economic growth.

Ahmed Al Omran and Sarah Mcfarlane contributed to this article.

Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com

* The OPEC Deal - At a Glance

* Crude Price Jumps Amid Vienna Talks

* Deal Could Be a Boon to World Economy

* Cut Might Give Lifeline to U.S. Shale Producers

* Stocks End Month With Gains

Credit: By Benoit Faucon and Georgi Kantchev

Subject: Agreements; Crude oil prices; Petroleum production; Energy industry

Location: Iran United States--US Russia Saudi Arabia

Company / organization: Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844750727

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844750727?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Market to Tighten on OPEC's Production Cut Deal: JPM; Nymex is down 28 cents at $49.16 a barrel

Author: Hsu, Jenny

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract: None available.

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0100 GMT [Dow Jones] OPEC's decision to reduce the group's production by 1.2 million barrels a day will provide significant support for the global crude market in the first quarter, says JP Morgan in a note. The bank says the latest production quotas imply OPEC's 2017 production will be around 1 million barrels below the bank's previous estimate. "While we acknowledge that OPEC's track record of delivering on production cuts has historically been poor, on a net basis we expect this to tighten crude markets," the bank says. Nymex is down 28 cents at $49.16 a barrel.

Write to Jenny Hsu at jenny.hsu@wsj.com

Credit: By Jenny Hsu

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844752989

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844752989?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Keeps Rising After OPEC Output Deal; Agreement will cut output by 1.2 million barrels, though questions over enforcement remain

Author: McFarlane, Sarah; Sider, Alison; Hsu, Jenny W

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

[...]analysts were hopeful that the agreement could move oil supply and demand closer together more quickly than would happen if OPEC members keep pumping at current high levels, even if the actual cuts turn out to be smaller than what was announced.

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Oil prices rose to some of their highest prices of the year Thursday, building on gains made after OPEC struck a long-sought agreement to reduce production by 1.2 million barrels a day.

U.S. crude futures briefly topped their one-year-high of $51.60, hit in October, before settling at $51.06 a barrel on the New York Mercantile Exchange, up $1.62, or 3.28%, from Wednesday's close. Brent, the global benchmark, gained $2.10, or 4.05%, to $53.94 a barrel--the highest settlement value since August 2015.

The agreement struck by representatives of the Organization of the Petroleum Exporting Countries marked the group's first concerted effort to slash output since 2008.

Market participants were skeptical in the days leading up to the meeting that major producers would be able to put aside their differences, and the deal caught some by surprise. U.S. crude futures rose more than 9.3% Wednesday.

And questions remain about whether countries will stick to the agreement. But optimism is growing that the cut, representing about 1% of global production, will help to reduce a supply glut that has depressed prices for more than two years.

"Market forces have brought supply and demand back close to balance already. The cuts are more intended to accelerate the rebalancing process and in particular the drawdown of the large inventory overhang," said Gordon Gray, global head of oil and gas equity research at HSBC.

The group is expected to reassess the effectiveness of the deal in six months.

Analysts say the biggest question remains enforcement, as OPEC has no authority to make its members comply. OPEC members have a history of producing beyond their allotted quotas. Adam Longson, commodities analyst at Morgan Stanley, said that OPEC exceeded its quota by an average of 883,000 barrels a day from 2000-2008.

"Do I think there's a possibility these guys will not honor their quotas? Yes. They've proven in the past numerous times that they can get out of the market what they want," said Gene McGillian, research manager for Tradition Energy.

Still, analysts were hopeful that the agreement could move oil supply and demand closer together more quickly than would happen if OPEC members keep pumping at current high levels, even if the actual cuts turn out to be smaller than what was announced.

"While we acknowledge that OPEC's record of delivering on production cuts has historically been poor, on a net basis we expect this to tighten crude markets," said Scott Darling, the head of Asia-Pacific oil and gas research at J.P. Morgan.

And some said markets have been buoyed by the signal that OPEC is returning to its policy of taking collective action to keep prices from cratering--a reversal from two years ago when the group essentially lifted all output quotas, allowing more supply to come to an already flooded market.

"Although this may seem like a drop in the bucket of rebalancing the global supply/demand equation, the coordination seems to be enough for the markets to hang their hat on for now," analysts at TAC Energy wrote in a research note Thursday.

Higher prices, however, are likely to cause more U.S. shale producers to increase production.

The latest production data from the U.S. Energy Information Administration showed U.S. production increased by 9,000 barrels a day to 8.7 million barrels for the week ended Nov. 25.

"There is a real risk that higher prices could reactivate more dormant shale oil," said ANZ Research, which expects international oil prices to hit strong resistance at around $60 a barrel in early 2017.

Another wild card is the cooperation of non-OPEC producers, which are expected to decrease production by 600,000 barrels a day. Russia said it would cut production by 300,000 barrels a day, though it isn't clear how much of that will come from already expected declines.

"In fact, we're not even fully confident that Russia will freeze production, particularly if the market tempts them with higher prices," said Tim Evans, a Citi Futures analyst.

Gasoline futures rose 6.45 cents, or 4.35%, to settle at $1.547 a gallon. Diesel futures rose 7.16 cents, or 4.54%, to $1.6479 a gallon.

Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Alison Sider at alison.sider@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com

* Heard on the Street: OPEC Windfall Shows Talk Isn't Cheap

* U.S. Stocks Edge Higher; Bonds Sell Off

* Higher Prices Threaten Oil Demand in Asia

Credit: By Sarah McFarlane, Alison Sider and Jenny W. Hsu

Subject: Supply & demand; Agreements; Crude oil prices

Location: United States--US

Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Morgan Stanley; NAICS: 523110, 523120, 523920; Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844756447

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844756447?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Traders Sense an End to a Long Slump for Oil

Author: Puko, Timothy; Sider, Alison

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Dec 2016: B.1.

ProQuest document link

Abstract:

Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said.

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Oil prices surged Wednesday as investors hoped a deal clinched by major oil-producing nations would help oil prices break out from a punishing slump that has lasted more than two years.

The Brent global benchmark broke above $50 a barrel for the first time in a month, while U.S. crude futures rose 9.3% to $49.44.

Now, some investors say the OPEC deal likely will accelerate that process.

"This is going to be the event that signals the recovery," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston.

OPEC members agreed to cut production by 1.2 million barrels a day from the current 33.6 million barrels, which would erase about 1% of global output. OPEC also expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day.

U.S. crude production is down 9.5% from last year's peak even with a recent uptick. Major global companies have cut investment by $125 billion annually, Mr. Pickering said.

Energy Aspects, a London-based consultancy, said the deal could keep prices steadily above $60 a barrel by the first quarter of 2017.

---

Sarah McFarlane contributed to this article.

Credit: By Timothy Puko and Alison Sider

Subject: Crude oil; Commodity prices

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2016

Publication date: Dec 1, 2016

column: Commodities

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844832940

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844832940?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Surges on Pact to Cut Output

Author: Faucon, Benoit; Kantchev, Georgi

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Dec 2016: A.1.

ProQuest document link

Abstract:

OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.

Links: 360 Link to Full Text

Full text:

VIENNA -- OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.

At the same time, the pact benefits the shale producers, giving them an incentive to ramp up production -- a move that could eventually bring a halt to any oil-market rally.

Oil prices surged and shares of more than 50 U.S. exploration-and-production companies climbed more than 10% following the agreement.

The biggest gainers in energy stocks were generally those operating in regions that have been uneconomical to drill for much of the past two years. The S&P 500's energy sector advanced 4.8%.

"It's a good day for the oil market, it's a good day for the oil industry," Saudi Arabian Energy Minister Khalid al-Falih said after the deal was reached.

He said the deal, in which the Saudis agreed to take on the highest burden of cuts at 486,000 barrels a day, "is not only what we wanted, but what the market wanted."

---

Ahmed Al Omran and Sarah Mcfarlane contributed to this article.

Credit: By Benoit Faucon and Georgi Kantchev

Subject: Agreements; Petroleum production; Crude oil prices

Location: Iran United States--US Russia Saudi Arabia

Company: Organization of Petroleum Exporting Countries--OPEC

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Dec 1, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economi cs--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844833169

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844833169?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Dow Industrials Rise; Bond Selloff Continues; Crude keeps climbing after OPEC agrees to cut oil production

Author: Whittall, Christopher; Kuriloff, Aaron

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

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Abstract:

The election of Donald Trump has boosted investors' expectations for higher U.S. growth and inflation in recent sessions, sending government debt and dividend stocks tumbling while sparking gains in the dollar and shares that tend to do better in times of economic expansion. The recent move higher in global bond yields has been driven mainly by expectations of higher U.S. growth and inflation that could cause the Federal Reserve to raise interest rates faster than previously expected.

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Gains in energy shares pushed the Dow Jones Industrial Average higher to open the final month of the year, while selling in yield-bearing stocks and government bonds accelerated.

The blue-chip index rose 66 points, or 0.3%, to 19189 on Thursday after posting in November its biggest monthly gain since March. The S&P 500 slipped 0.2%, and the Nasdaq Composite fell 1.2%.

Energy stocks were among the biggest climbers in the S&P 500, adding 1.8% as U.S. crude continued climbing. U.S. oil prices rose 4.2% to $51.49 a barrel after surging more than 9% on Wednesday in the wake of a deal from the Organization of the Petroleum Exporting Countries to cut production . Chevron posted among the biggest gains in the Dow industrials, rising 2.8%.

Investors sold real estate, utilities and consumer staples shares, known as proxies for bonds, and the yield on the 10-year Treasury note climbed to 2.473% from 2.365% at Wednesday, according to Tradeweb. U.S. Treasurys saw their worst month in seven years in November. Yields rise as prices fall.

Some analysts said a strong jobs report Friday could increase the pace of that rotation, even as several remain concerned that investors' hopes for a new pickup in economic expansion eventually could be dashed.

"It's not clear if those expectations are going to be fulfilled," said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas. "It really hinges on the success of some of these reflationary policies."

Technology shares lagged, falling 2.2% in the S&P 500 as semiconductor companies Applied Materials, Nvidia and Lam Research all lost more than 5%. The Nasdaq Biotechnology Index fell 0.8%.

European stocks slipped, after Asian shares gained overnight on the back of Wednesday's surge in crude prices .

European shares lagged behind a rally in U.S. stocks last month as investors have remained cautious ahead of Italy's constitutional referendum Sunday--the first of a series of important votes in Europe in the coming months.

Many analysts expect Italy's reform-minded government to lose that vote, potentially unseating Prime Minister Matteo Renzi.

Chris Jeffery, an asset allocation strategist at Legal & General Investment Management, said there is "market agitation about political risk" but added this "is happening against a backdrop where the global economy has surprised positively."

"On equities, we're pretty close to neutral because of these offsetting pressures: political risks on the one hand, but the economic data not looking too bad on the other hand," he said.

A string of eurozone data releases showed promising signs for the local economy Thursday. The eurozone manufacturing purchasing managers index hit its highest level in November since January 2014, according to IHS Markit.

Energy shares gained in Europe, but weakness across most other sectors dragged the Stoxx Europe 600 down 0.3%. So-called bond proxies such as utilities and real-estate stocks were among the worst-performing sectors.

Eurozone government bonds were also weaker, with the yield on the 10-year German government bond rising to 0.340%, according to Tradeweb.

Bond investors are looking ahead to the European Central Bank's meeting next week. Most analysts expect the ECB will extend its vast bond-buying program beyond March.

The recent move higher in global bond yields has been driven mainly by expectations of higher U.S. growth and inflation that could cause the Federal Reserve to raise interest rates faster than previously expected. Higher oil prices, which also should boost inflation, have further fueled the selloff.

"The move in Treasurys has been very significant. It does capture a degree of optimism around the growth outlook for next year," said Andrew Wilson, global co-head of fixed income management at Goldman Sachs Asset Management, who thinks it is highly likely the Fed will raise rates in December.

Still, Mr. Wilson said, "we'd need to see validation of that optimism in economic data" for yields to move higher from here.

The U.S. dollar also gained on expectations of higher interest rates, which tend to boost the attractiveness of a currency. The WSJ Dollar Index, which measures the dollar against a basket of 16 other currencies, was down 0.2% Thursday, after closing at its second-highest level of the year Wednesday.

The British pound jumped after the minister responsible for the country's exit from the European Union said the U.K. would consider making payments to the EU budget to secure the best access to the bloc for trade. The pound was up 0.6% against the dollar at $1.2602.

In Asia, Australia's S&P ASX 200 closed up 1.1%, while Japans's Nikkei Stock Average also rose 1.1%, to close at its highest level of the year.

In other commodities, gold prices fell 0.4% at $1,169.90 an ounce.

--Jenny Gross contributed to this article.

Write to Christopher Whittall at christopher.whittall@wsj.com and Aaron Kuriloff at aaron.kuriloff@wsj.com

Credit: By Christopher Whittall and Aaron Kuriloff

Subject: Interest rates; Stocks; Central banks; Purchasing managers index; Crude oil prices; Eurozone; Treasuries

Location: United States--US

People: Renzi, Matteo Trump, Donald J

Company / organization: Name: Lam Research Corp; NAICS: 334413; Name: Applied Materials Inc; NAICS: 333242; Name: Legal & General Investment Management; NAICS: 523930

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844838818

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844838818?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Higher Prices, Weaker Currencies Threaten Oil Demand in Asia; Asia is a crucial market for OPEC as the cartel contends with declining market share

Author: St rumpf, Dan; Hsu, Jenny W

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

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Benchmark Brent crude prices are up nearly 7% this week, trading at five-week high above $52 a barrel. Since oil is priced in dollars, it makes crude more expensive in local currencies that have weakened against the greenback.

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Corrections & Amplifications:

The chart for India and China shows gasoline demand. An earlier version of the chart incorrectly stated that demand was for oil in the chart and attribution for the data. (Dec. 2)

Rising oil prices in the wake of OPEC's production cut could deliver a one-two punch to demand from Asia's emerging energy consumers, where weakening currencies have already led to higher prices.

China and India, the world's second- and third-largest oil consumers after the U.S., have each seen declines in their currencies versus the U.S. dollar in recent weeks. The Indonesian rupiah and Malaysian ringgit have also hit the skids.

The currency declines compound the effect of the surge in oil prices following Wednesday's

decision to cut production by 1.2 million barrels a day by the Organization of the Petroleum Exporting Countries, analysts and economists said. Benchmark Brent crude prices are up nearly 7% this week, trading at five-week high above $52 a barrel.

Since oil is priced in dollars, it makes crude more expensive in local currencies that have weakened against the greenback. In terms of Indian rupees, for example, the price of a barrel of oil has actually risen 8% last month.

"You have the negative compound effect of a weaker currency and higher oil prices," said Virendra Chauhan, oil analyst at the research firm Energy Aspects. "It could dent demand at the margin."

Emerging-market currencies have fallen sharply in the past month against the dollar, with investors placing bets on higher interest rates in the U.S. and the prospect of reduced global trade under a Donald Trump presidency. The rupee fell 2.7% in November against the dollar, while the Chinese yuan lost 1.6%, the Malaysian ringgit is down 6.1% and the Indonesian rupiah is off 3.9%.

Asia is a crucial market for OPEC as the cartel contends with declining market share and rising competition from domestic production in the U.S. But even in Asia, OPEC is fighting to maintain its hold amid growing competition from Russian crude. OPEC accounted for 59% of China's oil imports in September, down from an average of 66% four years ago, according to Chinese customs data.

Asia is home to some of the world's fastest-growing economies and energy consumers, though the pace of the expansion has decelerated alongside economic growth. The International Energy Agency in November highlighted a slowdown in oil demand in China and India in recent months, which it said is contributing to a broader slowing in global oil-demand growth.

Even at $50 a barrel, oil prices are still low compared with a few years ago when $100-a-barrel crude was the norm. Those low prices have been a boon to a region where economic growth has slowed and asset bubbles have rippled across markets.

"There would have been a much sharper economic downturn had oil prices stayed where they were at over $100 a barrel," said Frederic Neumann, Asia economist at HSBC in Hong Kong.

In China, gasoline demand in October was up 17% to 32.83 million barrels a day from a year earlier, according to consultancy Facts Global Energy. India's gasoline demand showed the same pattern, rising 13% in October from the previous year.

FGE expects demand in India and China to increase next year, juiced by rising auto sales.

Crude-oil demand by Chinese refiners, however, may slow slightly if prices stay above $50 or higher, as higher crude prices mean narrower margins.

"The ideal crude price range for us is between $42 to $48 a barrel," said Zhang Liucheng, vice president of Shandong Dongming Petrochemical, one of China's biggest independent refiners.

But while higher prices usually stunt buying, as long as the increase is between 10% and 15%, Asia demand will be remain largely unaffected, said Jeff Brown, president of FGE.

"If oil level remains in the $50s, it is actually indifferent in terms of economic growth and oil demand. But if you start getting more extreme, like going down past $40 and above $60, then it starts to be more of an issue," said Scott Darling, head of oil and gas research Asia Pacific at J.P. Morgan.

Write to Dan Strumpf at daniel.strumpf@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com

* China Stands to Gain From OPEC Deal

* Oil Keeps Rising After OPEC Output Deal

* Off the Charts: OPEC Deal Pumps Up Asia

Credit: By Dan Strumpf and Jenny W. Hsu

Subject: Crude oil prices; Supply & demand; Currency; Economic growth

Location: United States--US Asia India China

People: Trump, Donald J

Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844848720

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18448 48720?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

China Stands to Gain From OPEC Deal; Output agreement could boost the country's oil industry and reduce its reliance on Saudi crude

Author: Spegele, Brian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

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Abstract:

BEIJING--For China's beleaguered oil sector, a deal by the Organization of the Petroleum Exporting Countries to cut output could offer a lifeline to an industry that has been hammered by low prices--and may also hasten its shift away from a heavy reliance on Saudi crude.

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If successfully implemented, the deal portends important shifts in how China buys foreign oil, analysts said. It could also help stem a recent slide in domestic production, which in turn would protect jobs across its troubled energy patch.

It is tough to overstate China's importance to OPEC and the energy industry. In addition to being one of the biggest oil importers, it is also a huge producer, making it vulnerable to the supply glut that has roiled markets since 2014.

The agreement Wednesday by OPEC calls for cutting production by 1.2 million barrels a day, which sent benchmark oil prices soaring to more than $50 a barrel in Asia trading on Thursday, up about 9% versus a day earlier.

While uncertainty remains over how the deal will play out, if implemented Saudi Arabia could see its market share in China eroded by Iran and other OPEC rivals. Saudi Arabia takes on the highest burden of cuts under the agreement--486,000 barrels a day--and that could open a door for others to compete in China.

"If that happens, Saudi Arabia will have to reduce its exports more" than others in OPEC, said Sushant Gupta, oil analyst at the consultancy Wood Mackenzie.

Already the Saudis are losing market share in China. Its oil makes up about 14% of China's total crude imports, down from nearly 20% five years ago.

In many ways, a range of $55-$60 per barrel--where some observers believe prices could ultimately be headed in the coming months if the deal holds--is a sweet spot for China.

On one hand, higher prices would cut losses at domestic oil fields , which have contributed to lower overall profits for China's state-owned energy companies--and ultimately less revenues for the government.

At the same time, the moderate price rebound means China's import bill for oil from abroad will still remain far below what it was when prices topped $100. That is also good news for the government, which has worried about capital outflows.

One area to consider is how a sustained uptick in prices affects domestic production. China's aging fields are more expensive to pump than those of other countries. That has led to a steep drop-off in output as global prices plummeted, particularly at huge onshore fields such as Daqing in northeast China.

"It has the potential to stem the decline and move things toward some sort of stability on what has been a one-way train," said Thomas Hilboldt, head of Asia-Pacific resources and energy research at HSBC.

Rising imports by China always made it a key market for OPEC. As legions of new Chinese drivers have taken to the roads in recent years, demand for oil has steadily risen.

Yet, OPEC's intention to cut production now comes just as China's own import growth is also likely to ease next year. Chinese demand is a key determinant of global prices, meaning without the agreement, the global glut that depressed markets would only deepen, analysts said, adding to OPEC's urgency to act.

Write to Brian Spegele at brian.spegele@wsj.com

* The OPEC Deal--At a Glance

Credit: By Brian Spegele

Subject: Supply & demand; Agreements; Energy economics; Market shares; Energy industry

Location: Asia China Saudi Arabia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844857349

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844857349?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil-Price Rebound Gives Banks New Reason to Cheer; Some bank shares hit or neared postcrisis highs after Wednesday's OPEC deal; higher crude prices alleviate some worries about loan repayments by oil companies

Author: Rapoport, Michael; Ensign, Rachel Louise

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

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Abstract:

[...]Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries--and the resulting jump in oil prices--should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said. Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers and were part of "a challenging environment" for banks.

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Higher oil prices stemming from OPEC's agreement to cut crude production should give some banks a boost.

Bank stocks were slammed earlier this year when, among other factors, falling oil and gas prices raised concerns about troubled energy companies' ability to repay loans. But Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries--and the resulting jump in oil prices--should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said.

In particular, higher oil prices could mean that banks will release some of the reserves they set aside earlier this year to protect themselves against soured energy loans. Such releases would increase banks' earnings. The improving oil-price picture also could mean that banks' credit losses on energy loans will continue to decline, as they did in the third quarter.

"You certainly feel a lot better than you did at the beginning of the year," said Jason Goldberg, an analyst at Barclays.

The oil-price gains are the latest development to boost bank stocks, following higher interest rates, signs of stronger economic growth and hopes for looser regulation under a Donald Trump presidency .

In the past few weeks, shares of some big banks have neared or surpassed their highs since the 2008 financial crisis. The KBW Nasdaq Bank Index rose 2.2% on Thursday to a postcrisis high. Bank of America Corp. rose more than 1.8% on the day, Wells Fargo, 2.7%; J.P. Morgan Chase & Co., 2%; and Citigroup Inc., 1.6%. These stocks posted gains on Wednesday as well.

Regional banks that are significant energy lenders saw their shares rise, too. Regions Financial Corp. gained 2.2% Thursday, Comerica Inc. rose 2.2%, Zions Bancorp was up 1.6% and Cullen/Frost Bankers Inc. advanced 1.5%.

OPEC agreed on Wednesday to reduce crude-oil output by 1.2 million barrels a day. Analysts expect the move will boost oil prices to $55 or $60 a barrel from previous levels below $50. The benchmark U.S. oil price rose 3.3% on Thursday to $51.06 a barrel after soaring 9.3% on Wednesday, the biggest one-day percentage gain since February. Brent, the global benchmark, gained 4.1% on Thursday after jumping 8.8% in the previous session.

Prices sank below $27 a barrel early in 2016, the culmination of a monthslong selloff, leading banks to brace for the possibility of significant losses in their energy portfolios. "Criticized" energy loans--those deemed to have a higher risk of nonpayment--rose sharply. Fifteen of the largest U.S. banks amassed a combined $6 billion in reserves for energy loans, according to a Barclays analysis.

But fewer borrowers defaulted than banks had anticipated. By the time third-quarter earnings rolled around in October, bank executives were optimistic that their problems with energy loans had hit a turning point. At Wells Fargo, for example, net charge-offs of oil-and-gas loans fell to $168 million in the third quarter, from $263 million in the second quarter.

The OPEC agreement strengthens the case that the outlook for banks is improving, analysts said. The pact is a "modest positive" for banks that focus on the energy industry, Evercore ISI analyst John Pancari said in a research note Wednesday. A sustained increase in energy prices, he said, "could provide earnings relief" at those banks by prompting them to release energy-loan reserves.

Some banks have already begun to do so. J.P. Morgan released about $50 million in reserves for its oil-and-gas portfolio in the third quarter.

"I don't think anybody is saying that the [energy] industry is back on its feet, but we're certainly in a much better place than we were in January," said Douglas Petno, J.P. Morgan's chief executive of commercial banking, at a conference in mid-November.

Some banking regulators think the OPEC agreement will help banks, too. "Certainly, things that firm oil prices are going to be welcomed by banks," said Robert Kaplan, president of the Federal Reserve Bank of Dallas, speaking Wednesday to reporters at The Wall Street Journal.

Still, banks remain cautious, conscious that they could face renewed problems if oil prices were to plunge again and stay low. Many have cut exposure to the energy industry.

Wells Fargo's outstanding oil-and-gas loans declined 6% in the third quarter from the second. Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers and were part of "a challenging environment" for banks.

In a speech earlier Wednesday, Mr. Kaplan said the OPEC agreement could speed up the point at which oil supply and demand would strike a balance, which the Dallas Fed had forecast would occur by mid-2017. But he also said that, despite firming oil prices, more bankruptcies, restructurings and merger activity in the energy sector are expected.

Write to Michael Rapoport at Michael.Rapoport@wsj.com and Rachel Louise Ensign at rachel.ensign@wsj.com

Related Coverage

* Banks Have Had Enough of Oil's Wild Ride (Aug. 25)

* Regulators Warn Banks on Loans to Oil Producers (July 2)

* Coming to the Oil Patch: Bad Loans to Outnumber the Good (March 24)

Credit: By Michael Rapoport and Rachel Louise Ensign

Subject: Banking industry; Energy industry; Agreements; Loans; Bank reserves; Regional banks; Crude oil prices

People: Trump, Donald J

Company / organization: Name: Comerica Inc; NAICS: 522110, 551111; Name: Zions Bancorp; NAICS: 522110, 551111; Name: Regions Financial Corp; NAICS: 551111; Name: Bank of America Corp; NAICS: 522110, 551111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Citigroup Inc; NAICS: 551111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844874737

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844874737?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Government Debt Selloff Continues, With 10-Year Yield at 17-Month High; Higher oil prices adding to expectations of higher inflation, driving investors to switch into TIPS

Author: Zeng, Min

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract: None available.

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The government-bond market rout is deepening at the start of December following the biggest monthly selloff in seven years.

Higher oil prices and a solid U.S. manufacturing report Thursday fueled the latest episode of selling in bonds. The yield on the U.S. benchmark 10-year Treasury note closed at a 17-month high Thursday of 2.444%, compared with 2.365% Wednesday. Yields rise as bond prices fall.

The selloff rippled globally, pushing up 10-year government bond yields in the developed world, including those in Germany, France, the U.K., Denmark and Sweden. The 10-year German bund yield rose to 0.378%, the highest close level since January, according to Tradeweb.

"It has been a tough run for all global bond markets, but especially painful for the U.S.'' said Brian Edmonds, head of interest rates at Cantor Fitzgerald LP in New York.

The 10-year Treasury yield has soared by more than 1 percentage point from its record low set in July, a round trip that few investors and analysts had seen coming so soon. The selloff has been intensifying after the U.S. election in early November. Last month, it was up more than half of a percentage point, the most on a monthly basis since December 2009.

Investors are betting that the prospect of expansive fiscal and economic policy under the new U.S. administration would lead to stronger growth, higher inflation and potentially a faster pace of interest-rate increases by the Federal Reserve. This represents a big shift away from the notion of soft growth and low inflation that had sent investors piling into Treasury debt and sovereign bonds in other developed countries, pushing bond yields to historic lows this summer.

November's selloff alone wiped out more than $1 trillion from the global government bond universe, based on the changes of market value in Bloomberg Barclays indexes data.

A 3.3% price gain in the oil market extended Wednesday's rally after the Organization of the Petroleum Exporting Countries reached a deal to curb the continuing oil supply glut. Higher oil prices tend to boost inflation expectations, which chip away at bonds' fixed returns over time and is a big threat to long-term government bonds.

Meanwhile, the monthly U.S. manufacturing index Thursday boosted optimism toward the U.S. growth outlook, driving more investors to sell Treasury debt -- typically a haven when the economy falters.

The U.S. nonfarm payrolls report is due Friday, one of the most important monthly economic statistics. Traders say an upbeat report could fuel more selling in bonds. Economists expect the U.S. economy added 180,000 new jobs last month, up from a net gain of 161,000 in October.

Some of the world's large money managers have changed their view that yields would stay lower for longer.

"We are moving to a new regime in the bond market," said Nick Gartside, international chief investment officer of global fixed income at J.P. Morgan Asset Management, which had $1.8 trillion assets under management as of Sept. 30.

Mr. Gartside said he believes that Treasury bond yields had hit rock bottom in July following a 35-year span of lower yields. He said the 10-year yield would rise to 3% during 2017--a level where it had last traded in early 2014.

Reflecting his yield expectation, he has cut his Treasury bondholdings recently and preferred corporate bonds. He said bonds sold by lower-rated corporate-debt issuers are attractive amid a brighter growth outlook.

Some investors believe bond yields have room to rise. They argue that higher Treasury yields are a healthy sign as it reflects a brighter assessment of the economy. The 10-year yield was less than half of the level where it had traded in 2007.

The sharp rise in yields reminds investors of the so-called taper tantrum episode in 2013, when worries over a cut in the Fed's bond-buying program rattled the bond market. Now, some investors are concerned that the bond rout may again spook investors and cause heavy outflows from bond funds. Analysts warn that this would generate further selling pressure in the bond market and lead to much higher yields from here.

U.S. bond mutual funds that target Treasury securities have suffered 11 consecutive weekly net outflows through Nov. 23 totaling $175.275 million, according to fund tracker Lipper. It is the longest losing streak since 2010.

So far the pace of redemption -- $16 million a week during this period -- is moderate. One week in November 2013, a weekly outflow surged above $300 million. For the year, the fund group has lured a net $1.779 billion inflow.

"The average retail investor will be slow to change direction in their mutual fund portfolios," said Tom Roseen, head of research services at Thomson Reuters Lipper. "Maybe the baby boomers will hold pat, fearing what some think to be an equity rally that is getting pretty long in the tooth and preferring bonds."

Bill Irving, portfolio manager at Fidelity Investments, which had $2.1 trillion assets under management at the end of October, said he scooped up Treasury debt from the selloff.

Mr. Irving said he is skeptical bond yields could rise sharply from here because that would rattle stocks and other riskier markets, tighten financial conditions and potentially drag down the growth momentum.

While higher yields shrink the value of outstanding bonds, they allow investors to invest new cash at more attractive yields. Higher yields are a boon to pension funds and insurance firms too. These institutional investors need high-grade long-maturity debt to match their long-term obligations. Traders say some have been buying long-term Treasury debt over the past week.

"Over the long haul, reinvesting at higher rates will boost your overall returns," said Gemma Wright-Casparius, senior portfolio manager of the fixed-income group at the Vanguard Group.

Write to Min Zeng at min.zeng@wsj.com

Credit: By Min Zeng

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844955551

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844955551?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Fed's Kaplan: U.S. Oil Output Could Reach 11 Million Barrels a Day or More; The comments come a day after OPEC agreed to cut its own production levels

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

Some analysts warn that U.S. producers, including those involved in hydraulic fracturing, may ramp up its own production in response to the OPEC deal to take market share from OPEC, a move that could threaten any price rally.

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SAN ANTONIO--Federal Reserve Bank of Dallas President Robert Kaplan said Thursday U.S. oil production has the potential to rise by more than 2 million barrels a day from current levels due to new finds, improved technology and already-productive fields.

"Based on discussions with people in the industry U.S. oil production could get to in excess of, say, 11 million [barrels a day] or greater," Mr. Kaplan said at a forum in San Antonio. He was responding to a question on where oil production could normalize after falling to 8.5 million barrels a day from a maximum of around 9.5 million.

The Fed official's comments come a day after OPEC agreed to cut its own production levels by more than 1 million barrels a day in an effort to boost prices. Some analysts warn that U.S. producers, including those involved in hydraulic fracturing, may ramp up its own production in response to the OPEC deal to take market share from OPEC, a move that could threaten any price rally.

But Mr. Kaplan said he doesn't believe U.S. producers will move to increase activity and production in a "substantial" way until price begin to approach the $55 to $65 a barrel range. The U.S. rig count, a gauge of drilling activity in Texas and other oil-producing states, has been ticking higher recently but remains very low compared with pre-oil bust levels.

Kaplan also said the OPEC deal will "accelerate" a rebalancing of supply and demand in oil markets that he believes was already in progress before the agreement was sealed.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Supply & demand; Petroleum production; Price increases

Location: United States--US

Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Economy

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1844955561

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844955561?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Mike Wiley's Recipe for Olive Oil-Poached Cod With Cauliflower Couscous; A gentle poach in a bath of olive oil renders cod remarkably tender and silky. In this recipe, Mike Wiley of Portland's Eventide Oyster Co. pairs the sumptuous fish with a lemony cauliflower couscous

Author: Greenwald, Kitty

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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COD HAS A MILD, firm flesh that lends itself to a wide range of preparations. But Maine chef Mike Wiley is especially partial to poaching the fillets in olive oil. "The green, grassy oil perfumes the fish," he said, "and the texture this technique achieves is remarkably luscious and light."

It's a gentle way of cooking, low and slow. "If your fillets are small you can even turn off the heat after adding them," Mr. Wiley said. "Then watch, because they'll be done in under 10 minutes." You'll know the fish is overcooking if you see foamy white albumin, a protein, seeping out of the fillets--a sure sign it's time to lift them out of the pot.

Here Mr. Wiley serves the cod on a bed of "couscous" made by pulsing blanched cauliflower in a food processor--"a great option for gluten-free guests," he said. Tossed with a lemony dressing and plenty of mint and chives, it makes a bright, herbal counterpoint to the sumptuous fish.

Olive Oil-Poached Cod With Cauliflower Couscous

Total Time: 30 Minutes Serves: 4

* Kosher salt

* ½ large head cauliflower, separated into florets

* 1¼ tablespoon sesame seeds, toasted

* 1 teaspoon smoked paprika

* Zest and juice of 1 lemon

* 1 large garlic clove, minced

* 4¼ cups olive oil

* 4 (4-ounce) cod fillets

* Leaves from 7 sprigs mint, roughly torn

* 10 chives, minced

1. Bring a medium pot of salted water to a boil over high heat. Add cauliflower and boil until beginning to soften but still resistant when pierced, about 3 minutes. Strain cauliflower and toss dry. In a food processor, pulse cauliflower until it resembles fluffy couscous.

2. In a large bowl, whisk together sesame seeds, paprika, lemon zest, half the juice, garlic and ¼ cup olive oil. Season with salt to taste and adjust other seasonings as needed. Fold in cauliflower couscous until evenly dressed. Add more salt, oil or lemon to taste.

3. Season cod liberally on both sides with salt. Pour remaining olive oil into a medium heavy pot over low heat. Once hot but not bubbling, or at 135 degrees, slide in cod fillets and make sure they are just covered in oil, working in batches if necessary to avoid overcrowding. Gently poach cod, keeping temperature steady, until it offers no resistance when pierced, about 6 minutes. If white albumin leeches out, immediately and gently lift fish out with a fish spatula. Blot cod dry on paper towels.

4. Toss chives and mint into couscous. To serve, distribute couscous among 4 plates and place one cod fillet over each helping.

The Chef: Mike Wiley

His Restaurants: Hugo's, Eventide Oyster Co., the Honey Paw, all in Portland, Maine

What He Is Known For: Injecting whimsy into Down East seafood. Anchoring Portland's emerging dining scene.

Credit: By Kitty Greenwald

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Life

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845003002

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845003002?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Windfall Shows Talk Isn't Cheap; Oil producers in the 14-member group have earned billions from the anticipation of Wednesday's cut and now will earn billions more even if the deal fails to pare supply

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

September's preliminary agreement of the Organization of the Petroleum Exporting Countries added billions of dollars to producers' coffers because the market reacted to a pledge to cut output even as they actually raised it.

Links: 360 Link to Full Text

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Imaginary numbers were first given that name because they were seen as silly, but now we know how useful they are. The same applies to the oil market.

Wednesday's surprise cut , which tacked on nearly 14% to crude prices in two days, has all the specifics that the first agreement lacked . As of January, 11 of 14 OPEC members have agreed to specific production levels, amounting to a 1.2 million-barrel cut. Russia may chip in 300,000 more.

That is meaningful on the surface, but consider the fact that OPEC-plus-Russian production has increased by about 800,000 barrels a day since August. U.S. production, which had dropped by over one million barrels a day since the 2015 peak, has rebounded by 200,000 barrels a day. So, two-thirds of the proposed 1.5 million-barrel OPEC-plus-Russia cut already has been offset.

Compliance is an obvious unknown, though it shouldn't be given OPEC's record. A true mystery is how quickly U.S. shale producers can react to this week's surge in prices. In the case of drilled but uncompleted wells, it is possible that incremental barrels will be coming to the market by June when OPEC members decide whether to extend their quotas for another six months. Calculating the effect on supply is bewildering.

Wednesday's agreement means money in the bank for producers today, though, and there is nothing imaginary about that.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Cartels; Agreements; Price increases

Location: Russia United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845009774

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845009774?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Saudis Wager On Higher Oil Prices to Drive Economic Diversification; Kingdom's decision to push for OPEC deal to trim output traces back to its need to cut reliance on crude exports

Author: Ahmed Al Omran

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

Should OPEC's bid for higher prices through lower production succeed, any resulting increase in government revenue would bolster one of the centerpieces of the Kingdom's economic transformation plan: divesting and listing up to 5% of state-owned energy giant Saudi Arabian Oil Co. in 2018.

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JUBAIL, Saudi Arabia--Saudi Arabia's decision to push for an OPEC deal to reduce crude oil production and boost prices traces back to the Kingdom's need to diversify its economy away from crude oil exports.

In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil. That means building up targeted non-crude sectors such as refined petroleum products, petrochemicals and minerals mining. From there, the Kingdom would help finance a push into other sectors, such as tourism, manufacturing and financial services.

That goal helped drive the Saudis toward pushing for substantial output restraints at the cartel's meeting in Vienna this week. It was a step the Kingdom has for decades avoided, as it pursued market share at the expense of prices.

A trip on Tuesday by Saudi King Salman bin Abdulaziz to a coastal industrial town helps illustrate the country's commitment to its recently mapped economic path. The king made his first visit as monarch to the oil-rich Eastern Province this week to attend events marking a string of multibillion-dollar investments by local and foreign companies in petrochemical and mining projects.

Those projects are key to Saudi Arabia's economic diversification. The high-profile royal visit, which included a light-and-sound show and aerial footage of an empty desert landscape transforming into refining and mining complexes, underscored the Saudis' industrial push.

With prices tumbling in recent years amid a glut of oil after a U.S. production boom and stabilizing around a relatively low $45 a barrel, the Kingdom posted a record budget deficit of $98 billion for 2015.

And with income from oil sales accounting for more than two-thirds of the country's budget revenue, it would take an average price of $70 a barrel to break even fiscally this year. Since mid-2014, when oil prices began their precipitous fall, Saudi Arabia has burned through a quarter of its cash reserves.

As government revenues have plunged, the Kingdom requires fresh capital to invest in projects to drive its economic migration away from crude oil. "There are a lot of spending commitments there," Robin Mills, of Dubai-based consultancy Qamar Energy, said of the Saudi economic diversification plan known as Vision 2030. "Even though you want to shift the economy away from oil, that still would depend quite a lot on upfront spending."

Saudi Arabia's shift from an emphasis on gaining market share to seeking higher prices comes after an uncertain period for the kingdom of 31 million people, as it has faced economic, fiscal and some political concerns. In the past year, for example, fiscal pressure pushed the government to cut spending and reduce popular energy subsidies.

Saudi Arabia's record $17.5 billion bond sale in October helped allay concern at the time about the nation's ability to raise funding. And after the bond sale, the government assured it would make up payment arrears to its private-sector contractors.

Those moves have helped ease some worry about liquidity in the Kingdom, sparking a recent Saudi stock-market rally. The benchmark Tadawul stock-market index has gained about 30% since the bond issue in mid-October.

The OPEC deal "will help Saudi Arabia achieve some of its key Vision 2030 priorities, avoid an increase in borrowing costs and find notable public support," said Helima Croft, global head of commodity strategy at RBC Capital Markets.

Since news of the production-cut deal was announced on Wednesday, oil prices have surged by more than 14%, with Brent crude, the international benchmark, quoted at $54.50 in London on Thursday afternoon. The test for OPEC will be whether higher prices and the group's production discipline hold, something member states haven't quite managed in such accords in the past.

In accepting this week's OPEC deal, the Saudis agreed to the biggest individual production cut--486,000 barrels a day. Before the agreement, the Kingdom was producing 10.06 million b/d, the highest output among OPEC members.

The Saudis also had to accept that bitter regional and OPEC rival Iran would be allowed either to increase its production slightly or decrease by just 90,000 barrels, depending upon how OPEC agrees to count oil production of its members, a divisive issue that has yet to be resolved. Iran was pumping about 3.8 million b/d up to this week, according to OPEC data.

The Saudi willingness to compromise with Iran showed its determination to get an OPEC deal done. Religious differences under Islam are partly behind the two countries' rivalry. Sunni Saudi Arabia and Shiite Iran have for decades been competing for greater influence in the Middle East, marshaling geopolitical coalitions that extend to proxies on the battlefield in some war zones, notably, these days, in Yemen.

Write to Ahmed Al Omran at Ahmed.AlOmran@wsj.com

Related Reading

* Oil Keeps Rising After OPEC Output Deal (Dec. 1)

* OPEC Deal Could Be a Boon to World Economy Amid Shifting Dynamics (Nov. 30)

* The OPEC Deal: At a Glance (Nov. 30)

* OPEC Cut Could Give Lifeline to U.S. Shale Producers (Nov. 30)

Credit: By Ahmed Al Omran

Subject: Crude oil; Crude oil prices; Budget deficits; Market shares; Diversification; Petroleum production

Location: Saudi Arabia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845020570

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845020570?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OVERHEARD: Peak Oil (Base Effect Edition)

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.

ProQuest document link

Abstract:

The impact was so severe, there was fear of deflation in some areas, though core inflation rates didn't get as close to negative.

Links: 360 Link to Full Text

Full text:

Lowflation expedition log, Dec. 1: We have reached oil base effect camp. The foothills lie behind; ahead is the mountain. The peak looks lofty indeed.

December 2015 and January 2016 saw a precipitous slide in oil prices that extended the energy drag on inflation. Brent crude fell from around $45 a barrel to a low of $28 by late January.

The Organization of the Petroleum Exporting Countries' deal has pushed Brent back above $50 a barrel--to a 52-week high of $53.94 Thursday on ICE Futures Europe--and the price is now 23% higher than a year ago. The impact was so severe, there was fear of deflation in some areas, though core inflation rates didn't get as close to negative.

But if oil remains at its average over the last three months, the year-over-year change will jump, reaching as high as 70% in late January. Even if oil prices fell back to $40, they would still be as much as 40% higher on the year early in 2017. The OPEC oil deal reached this week, which sent prices up as much as 15%, will make those numbers even more extreme.

Of course, the bulk of the year-over-year jump reflects price movements a year ago more than now. But in markets where reflation is all the rage, the oil base effect might only add fuel to the flames.

Subject: Prices; Inflation; Cartels

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845085614

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845085614?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Prices Take a Breather but Sentiment Remains Bullish; February Brent crude on London's ICE Futures exchange fell $0.34 to $53.60 a barrel

Author: Hsu, Jenny

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

ProQuest document link

Abstract:

Russia's production also reached a post-Soviet high at 11.2 million barrels a day in the same month. [...]OPEC's deal only cuts production but not exports.

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Crude futures moderated in early Asian trade on Friday, but market sentiment remains bullish on prices trending higher as major oil producers prepare to taper their production.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $50.92 a barrel at 0307 GMT, down $0.14 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.34 to $53.60 a barrel, but is up 11% this week so far, buoyed by the Organization of the Petroleum Exporting Countries' decision on Wednesday to pull back their output by 1.2 million barrels a day.

Oil prices jumped to a fresh year's high overnight on reports that leading non-OPEC producers, such as Russia and Oman, have also agreed to reduce their output.

The production cut pact is expected to take effect in January and participating oil nations will reassess in six months with an option to extend the accord for another six months.

If the deal is fully observed, it could shift the market into a deficit as early as the first half of next year. Brent prices could edge up to average between $55 and $60 a barrel in 2017, said Simon Flowers, chief analyst at consultancy Wood Mackenzie.

"However, this does depend on OPEC being very careful to meet the terms of the agreement," he cautioned.

Skepticism over members' compliance with production quotas isn't without ground as members have cheated their quotas in the past by underreporting or producing beyond their allotted limits.

Based on a Goldman Sach's forecast, compliance rate by members this time around is approximately 73% of the target, which would put OPEC's overall production at 33 million barrels a day.

JBC Energy expects compliance to be between 70% to 80% over the first quarter next year, but may tick lower when seasonal demand kicks in April. Crude demand in the Middle East, in particular Saudi Arabia, typically surges in the summer months to meet the increasing need for air conditioning.

But not everyone is impressed by the deal with some questioning the actual effectiveness of the pact.

"Cutting production when it is at an all-time high is not very helpful," said a Chinese oil trader based in Singapore. In October, OPEC production hit a record level at 33.64 million barrels a day. Russia's production also reached a post-Soviet high at 11.2 million barrels a day in the same month.

Moreover, OPEC's deal only cuts production but not exports. So, countries with high storage capacity and inventories such as Saudi Arabia will still be able to maintain their market share by drawing down existing stockpiles, while for countries like Iraq with less than two weeks worth of oil stocks, a cut "may not be palatable", said BMI Research.

Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 83 points to $1.5387 a gallon, while January diesel traded at $1.6427, 52 points lower.

ICE gasoil for December changed hands at $470.50 a metric ton, down $3.00 from Thursday's settlement.

Write to Jenny Hsu at jenny.hsu@wsj.com

Credit: By Jenny Hsu

Subject: Cartels; Compliance; Futures; Crude oil; Price increases

Location: Russia

Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845057422

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845057422?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Rebound Gives Banks Reason to Cheer --- As crude prices rise, lenders' losses on loans to energy firms are likely to decline

Author: Rapoport, Michael; Ensign, Rachel Louise

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: B.12.

ProQuest document link

Abstract:

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Full text:

Higher oil prices stemming from OPEC's agreement to cut crude production should give some banks a boost.

Bank stocks were slammed earlier this year when, among other factors, falling oil and gas prices raised concerns about troubled energy companies' ability to repay loans. But Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries -- and the resulting jump in oil prices -- should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said.

"You certainly feel a lot better than you did at the beginning of the year," said Jason Goldberg, an analyst at Barclays.

The oil gains are the latest development to boost bank stocks, following higher interest rates, signs of stronger economic growth and hopes for looser regulation under a Donald Trump presidency.

OPEC agreed on Wednesday to reduce crude-oil output by 1.2 million barrels a day. Analysts expect the move will boost oil prices to $55 or $60 a barrel from below $50. U.S. oil price soared 9.3% on Wednesday, the biggest one-day percentage gain since February. Brent, the global benchmark, gained 8.8%.

On Thursday, U.S. crude oil rose 3.3%, to $51.06, while Brent climbed 4.1%, to $53.94.

Prices sank below $27 a barrel early in 2016, the culmination of a monthslong selloff, leading banks to brace for the possibility of significant losses in their energy portfolios. "Criticized" energy loans -- those deemed to have a higher risk of nonpayment -- rose sharply. Fifteen of the largest U.S. banks amassed a combined $6 billion in reserves for energy loans, according to a Barclays analysis.

But fewer borrowers defaulted than banks had anticipated. By the time third-quarter earnings rolled around in October, bank executives were optimistic that their problems with energy loans had hit a turning point. At Wells Fargo, net charge-offs of oil-and-gas loans fell to $168 million in the third quarter, from $263 million in the second quarter.

The OPEC pact is a "modest positive" for banks that focus on the energy industry, Evercore ISI analyst John Pancari said in a note Wednesday.

A sustained increase in energy prices, he said, "could provide earnings relief" at those banks by prompting them to release energy-loan reserves. Some banks have already begun to do so. J.P. Morgan released about $50 million in reserves for its oil-and-gas portfolio in the third quarter.

Still, banks remain cautious, conscious that they could face renewed problems if oil prices were to plunge again and stay low. Many have cut exposure to the energy industry.

Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers.

Credit: By Michael Rapoport and Rachel Louise Ensign

Subject: Banking industry; Petroleum production; Bank stocks; Crude oil prices

Location: United States--US

People: Trump, Donald J

Company / organization: Name: Bank of America Corp; NAICS: 522110, 551111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Citigroup Inc; NAICS: 551111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.12

Publication year: 2016

Publication date: Dec 2, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845139474

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845139474?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

World News: Saudis Banking On Higher Oil Prices

Author: Ahmed Al Omran

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: A.8.

ProQuest document link

Abstract:

In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil.

Links: 360 Link to Full Text

Full text:

JUBAIL, Saudi Arabia -- The kingdom's decision to push for an OPEC deal to reduce crude-oil production and boost prices traces back to Saudi Arabia's need to diversify its economy away from crude oil exports.

In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil. That means building up targeted noncrude sectors such as refined petroleum products, petrochemicals and minerals mining. From there, the kingdom would help finance a push into other sectors, such as tourism, manufacturing and financial services.

That goal helped to drive the Saudis toward pushing for substantial output restraints at the cartel's meeting in Vienna this week. It was a step the kingdom has for decades avoided, as it pursued market share at the expense of prices.

Those projects are key to Saudi Arabia's economic diversification. The high-profile royal visit underscored the Saudis' industrial push.

With prices tumbling in recent years, amid a glut of oil after a U.S. production boom, and stabilizing around a relatively low $45 a barrel, the kingdom posted a record budget deficit of $98 billion for 2015.

Credit: By Ahmed Al Omran

Subject: Crude oil prices; Budget deficits; Petroleum production; Economic policy

Location: Saudi Arabia

People: Salman, King of Saudi Arabia

Company: Organization of Petroleum Exporting Countries--OPEC

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.8

Publication year: 2016

Publication date: Dec 2, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845142729

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845142729?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Equities -- Commodities: China Stands to Gain From Oil Cuts

Author: Spegele, Brian

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: B.11.

ProQuest document link

Abstract:

On the one hand, higher prices would cut losses at domestic oil fields, which have contributed to lower overall profits for China's state-owned energy companies and ultimately less revenue for the government.

Links: 360 Link to Full Text

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BEIJING -- For China's beleaguered oil sector, OPEC's deal to cut output could offer a lifeline to an industry that has been hammered by low prices and may also hasten its shift away from a heavy reliance on Saudi crude.

If successful, the deal portends important shifts in how China buys foreign oil, analysts said. It also could help stem a recent slide in domestic production, which in turn would protect jobs.

It is tough to overstate China's importance to the Organization of the Petroleum Exporting Countries and the energy industry. In addition to being one of the biggest oil importers, it is also a huge producer, making it vulnerable to the supply glut that has roiled markets since 2014.

The agreement reached Wednesday by OPEC calls for cutting production by 1.2 million barrels a day, which has sent benchmark oil prices soaring. On Thursday, U.S. crude rose 3.3% to $51.06 a barrel and global benchmark Brent rose 4.05% to $53.94. The gains followed increases of about 9% for each Wednesday.

While uncertainty remains over how the deal will play out, if implemented Saudi Arabia's market share in China could be eroded by Iran and other OPEC rivals. Saudi Arabia is taking on the highest burden of cuts under the agreement -- 486,000 barrels a day -- and that could open a door for others to compete in China.

The Saudis already have lost market share in China. Its oil makes up about 14% of China's total crude imports, down from nearly 20% five years ago.

In many ways, a range of $55 to $60 a barrel -- where some observers think prices could be headed in the coming months if the deal holds -- is a sweet spot for China.

At the same time, the moderate price rebound means China's import bill for oil from abroad will remain far below what it was when prices topped $100. That also is good news for the government, which has worried about capital outflows.

One area to consider is how a sustained uptick in prices affects domestic production. China's aging fields are more expensive to pump than those of other countries. That has led to a steep drop in output as global prices plummeted, particularly at huge onshore fields such as Daqing in northeast China.

Rising imports by China always made it an important market for OPEC.

As legions of new Chinese drivers have taken to the roads in recent years, demand for oil has steadily risen.

Yet, OPEC's intention to cut production now comes just as China's own import growth is also likely to ease next year. Chinese demand is a determinant of global prices, meaning without the agreement, the global glut that depressed markets would only deepen, analysts said, adding to OPEC's urgency to act.

Credit: By Brian Spegele

Subject: Supply & demand; Agreements; Energy industry; Crude oil prices; Market shares; Petroleum production

Location: Saudi Arabia China

Company: Organization of Petroleum Exporting Countries--OPEC

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.11

Publication year: 2016

Publication date: Dec 2, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845143801

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845143801?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Prices Rise for Third Straight Day; But skepticism over compliance with OPEC production quotas remains despite Wednesday's deal

Author: Sider, Alison; Salvaterra, Neanda

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

ProQuest document link

Abstract:

Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by under-reporting or producing beyond their allotted limits. [...]the OPEC supply action could cause some oil producers to lose market share as oil producers who aren't participating in the deal ramp up their output.

Links: 360 Link to Full Text

Full text:

Corrections & Amplifications:

U.S. crude futures rose 62 cents, or 1.21%, to $51.68 a barrel on the New York Mercantile Exchange. An earlier version of this story incorrectly said $51.62 a barrel. (Dec. 2)

Oil prices rose for a third straight day on Friday, after OPEC's agreement to cut output for the first time in eight years.

U.S. crude futures rose 62 cents, or 1.21%, to $51.68 a barrel on the New York Mercantile Exchange, its highest settlement since July, 2015. Brent, the global benchmark, gained 52 cents, or 0.96%, to $54.46 on London's ICE Futures Exchange.

Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back their output by 1.2 million barrels a day. "At this point I don't think too many people are willing to stand in front of it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates.

Oil's advances stalled overnight, however, with U.S. crude futures pulling back to $50.18 as investors took profits following the dramatic rally. But crude prices resumed their march higher later, as the market looked set to hold onto most of its recent gains.

U.S. crude futures gained 12.2% this week--the largest weekly percentage gain since 2009. But market participants say crude's rally could be running out of steam.

"I think it's getting close to the end of its rope," said Mark Waggoner, president of Excel Futures. "I see it getting tired and falling back. I just don't see this as a game changer when they're pumping as much as they are."

The deal to cut production is expected to take effect in January, and participating oil-producing nations will reassess in six months with an option to extend the accord for another six months.

If the deal is fully observed, it could shift the market into a deficit as early as the first half of next year. Brent prices could move higher to average between $55 and $60 a barrel in 2017, said Simon Flowers, chief analyst at consultancy Wood Mackenzie. "However, this does depend on OPEC being very careful to meet the terms of the agreement," he cautioned.

Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by under-reporting or producing beyond their allotted limits.

Moreover, the OPEC supply action could cause some oil producers to lose market share as oil producers who aren't participating in the deal ramp up their output.

"It is a dangerous game that Saudi Arabia is playing," said Michael Cohen, the head of energy commodities research at Barclays. "Should prices rise too high then the amount of shale oil that comes into the market will eventually start to cut into their market share."

The U.S. put three more oil rigs back to work in the latest week, bringing total active rigs to 477, the most since late January, according to Baker Hughes.

Gasoline futures gained 1.21 cents, or 0.78%, to $1.5591 a gallon. Diesel futures rose 1.02 cents, or 0.62%, to $1.6581 a gallon.

--Jenny W. Hsu and Dan Molinski contributed to this article.

Write to Alison Sider at alison.sider@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com

Credit: By Alison Sider and Neanda Salvaterra

Subject: Market shares; Market entry; International finance; Price increases

Location: United States--US

Company / organization: Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845208364

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845208364?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Russia's Lukoil Identifies Older Oil Fields for Output Cuts; Russia's second-largest oil producer PAO Lukoil is prepared to cut output by winding down production at older, more expensive fields.

Author: Mills, Laura

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

ProQuest document link

Abstract:

Russia reached a new post-Soviet record in oil production in October, as production climbed to 11.22 million barrels a day, up more than 4% from the same month last year. Since the end of July, Russia brought some 370,000 more barrels a day online, increasing production from 10.85 barrels a day.

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MOSCOW--Russia's second-largest oil producer PAO Lukoil (LKOH.MZ) is prepared to cut output by winding down production at older, more expensive fields, Vice President Leonid Fedun said Friday.

Mr. Fedun said the decision this week by The Organization of the Petroleum Exporting Countries to cut production by 1.2 million barrels a day was welcome for Russia, where both the state budget and oil companies would benefit.

He said Lukoil could easily terminate production at older fields in West Siberia to bring the company in line with expected cuts, though he didn't confirm by how much it expected to reduce output.

Fields "that are high-cost and low-income will stop, there are no problems-quite the opposite, it will allow Lukoil to increase cash flow," he said.

On Wednesday, Russian Energy Minister Alexander Novak said Russia would join the OPEC agreement by "gradually reducing" production in the first half of 2017 by up to 300,000 barrels a day.

But it is unclear how much the cuts will affect Russia, which has ramped up production throughout the year.

Russian oil and gas producers have been largely sheltered from falling crude prices by a weaker ruble, allowing them to intensify drilling despite the downturn.

OPEC is expected to hold talks with non-OPEC producers on Dec. 9.

Write to Laura Mills at Laura.Mills@wsj.com

Credit: By Laura Mills

Subject: Supply & demand; Cartels; State budgets; Petroleum production

Location: Russia

People: Novak, Alexander

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845229747

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845229747?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OPEC Deal Is No Remedy for Poorest Members; A rise in oil prices helps emerging-market producers but won't rescue their economies

Author: Gabriele Steinhauser; Lynn Cook; Sara Schaefer Muñoz; Steinhauser, Gabriele; Cook, Lynn; Sara Schaefer Muñoz

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

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Abstract: None available.

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A sustained oil-price rally driven by the Organization of the Petroleum Exporting Countries' production-cut agreement could provide relief for the cartel's poorest members but won't reverse the dramatic economic declines caused by the two-year crude-market slump.

Poorer OPEC members such as Angola, Nigeria and Venezuela are desperate for higher government revenue and economic growth that rising oil prices could bring. Fallen revenues have taken a steep human toll, with food shortages in Nigeria and political unrest in Venezuela .

These countries were among the most vocal in pushing for an OPEC production cut over the past two years, with Venezuela's oil minister traveling to Algiers, Moscow and Vienna in the 48 hours before the deal was reached on Wednesday. Even with the sacrifice of cutting production, the domestic political payoff of directly acting to push prices up will go far.

"They need the deal," said Skip York, vice president of integrated energy at Wood Mackenzie's Americas Research Team, of OPEC's poor countries.

Oil prices are up over 12% since Wednesday's deal, and J.P. Morgan Chase and other oil-industry oil-industry analysts say the cuts, if actually undertaken, could sustain prices between $55 and $60 a barrel--a level OPEC members have said they are targeting.

In Angola, a rise in the price of oil to $55 a barrel on average would boost government revenues by 9% in 2017, while $50 oil would lift it by 4%, according to analysts at Eaglestone Securities. Prices were as low as $28 a barrel this year and were under $50 for sustained periods.

But even if the rally sticks, government revenues will remain far off the levels seen in 2012 and 2013, when brent crude averaged above $100 a barrel. Angola, Nigeria and Venezuela don't have the deep pockets that helped temper market turbulence in other OPEC states such as Saudi Arabia.

Higher prices, however, won't necessarily buy an economic revival for wealthier OPEC members. Saudi Arabia's willingness to commit to cutting output stems in part from its goal to diversify the economy away from oil.

Recent prices increases may not be enough to change poorer OPEC members' economic fortunes or help them pay off piles of debt, said James McCormack, global head of Sovereigns at Fitch Ratings Inc.

OPEC actions "certainly do not fully resolve the stresses most emerging market oil exporters are experiencing," Mr. McCormack said.

Oil-production cuts, even small ones, are painful for these countries as the price of oil rises, said Geoffrey Heal, a professor at Columbia Business School and a former economic adviser to OPEC during the 1990s.

Angola agreed to cut 78,000 barrels a day, while Venezuela is cutting 95,000 barrels a day--between 4.5% and 5%. Nigeria was exempted from any obligation to cut since a rebellion in the Niger Delta caused disruptions to its output. There were also modest cuts for such producers as Ecuador (26,000 barrels a day), Gabon (9,000 barrels a day) and Algeria (50,000 barrels a day).

Nigerian oil minister Emmanuel Ibe Kachikwu was quick to voice support for the deal Wednesday, saying he was satisfied that the output cut is "big enough."

His country has become increasingly desperate for price relief. With 187 million people, and trillions of dollars in untapped crude oil, Nigeria was meant to power Africa's rise. Instead, it has emerged as a symbol of how fast and far low oil prices have dragged down some emerging markets.

More than a year of dwindling oil revenues have sent what was Africa's largest economy into a deep recession. Nigerian consumers have found themselves stuck in miles-long queues for gas. Supermarkets have struggled to keep shelves stocked while new shopping malls built when prices were higher are empty.

A scarcity of dollars, as the government has hoarded foreign currency to safeguard shrinking reserves, has stifled business activity, particularly for importers.

In Africa's other leading oil exporter, Angola, the oil-price plunge has hammered the budget, driving up debt, which the IMF expects to surpass 70% of GDP this year.

A lack of funding undermined the government's ability to combat the worst outbreak of yellow fever in the country in years, which, according to the World Health Organization killed almost 400 people.

In Venezuela, a rise in oil prices would do little to relieve the suffering of people who are faced with chronic shortages of food and medicine. The annual inflation rate could rise to between 530% and 2,000% by 2017, said Venezuelan economist Angel Garcia Banchs.

Mr. Garcia Banchs said government currency and exchange controls are the main drivers of inflation, while Fitch's Mr. McCormack said years of borrowing and spending compounded the problems of the oil-price crash that began in 2014.

"Things are going to continue as they are, with people falling into hunger, and depression, unless there is political change," Mr. Garcia Banchs said.

Joe Parkinson contributed to this article.

Write to Gabriele Steinhauser at gabriele.steinhauser@wsj.com and Lynn Cook at lynn.cook@wsj.com

* A Struggle for Daily Bread in Venezuela

* Oil-Price Drop Pushes Nigeria Into Technical Recession

* Saudis Wager on Higher Oil Prices to Drive Diversification

Credit: By Gabriele Steinhauser, Lynn Cook and Sara Schaefer Muñoz

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845274784

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845274784?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Oil-Rig Count Up by Three in Week to 477; Latest tally extends rising trend evident since this past summer

Author: Steele, Anne

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

ProQuest document link

Abstract:

The number of rigs drilling for oil in the U.S. rose by three in the past week to a total of 477, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector.

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The number of rigs drilling for oil in the U.S. rose by three in the past week to a total of 477, according to oil-field services company Baker Hughes Inc.

The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector.

After peaking at 1,609 in October 2014, low oil prices had put downward pressure on production and the rig count receded. The count has generally been rising since this past summer, however.

The nation's gas-rig count rose by one to 119 in the past week, according to Baker Hughes. And the U.S. offshore-rig count fell by one to 22, which is three fewer than a year ago.

On Friday, oil prices wavered between losses and gains , after their steep ascent in recent days on news that the Organization of the Petroleum Exporting Countries agreed to cut production.

Oil prices were 0.5% higher at $51.33 a barrel in recent trading on Friday.

Write to Anne Steele at Anne.Steele@wsj.com

Credit: By Anne Steele

Subject: Oil service industry; Supply & demand

Location: United States--US

Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845292681

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845292681?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Mexican Oil Auction Offers First Major Test of Foreign Firms' Interest; BP, Chevron, Exxon, Petrobas expected to bid on Gulf of Mexico deep water oil fields

Author: Montes, Juan; Whelan, Robbie

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

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Abstract: None available.

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MEXICO CITY--Mexico is preparing to auction rights to its oil-rich deep waters in the Gulf of Mexico, considered the crown jewel of the country's energy industry, which opened to foreign investment only three years ago.

The auction on Monday is seen as the first major test of Mexico's ability to work with the world's top players.

At a time when low oil prices are limiting production elsewhere, the deep-water blocks have caught the attention of energy giants Exxon Mobil Corp., Chevron Corp. and BP PLC, and state-owned firms Statoil ASA of Norway and Petróleo Brasileiro SA of Brazil, among others.

The country's oil regulator hopes to award up to 10 unexplored deep-water blocks and find an operating partner to take a 60% stake in the Trion oil field, located offshore just south of the U.S.-Mexico border, alongside national champion Petróleos Mexicanos, or Pemex.

"In terms of the scale of the projects, this is the biggest one," said Juan Carlos Zepeda, head of the National Hydrocarbons Commission, referring to the deep-water auctions. Government officials expect the cost of developing all 10 of the unexplored blocks to be $34 billion over the next 15 years.

Since an ambitious overhaul opened up Mexico's oil industry to foreign and private investment in 2013, there have been three public tenders; but they offered less-profitable shallow water and inland blocks. While those auctions attracted some global players such as Italy's Eni SpA, the world's largest oil companies largely watched from the sidelines.

This time, expectations in the market are high.

"To have a household name operating in Mexico--that's what they really need in order to consider this a success. It would be an enormous step." said Steven Otillar, a Houston-based partner with the law firm Akin Gump Strauss Hauer & Feld who has worked on deals in Mexico's energy industry for two decades.

Pemex's production has been declining for more than a decade, and the near exhaustion of Mexico's largest oil source, the Cantarell shallow-water field, has forced Mexico to shift its attention to deep-water areas. Authorities estimate that around half of Mexico's prospective oil resources lie in deep waters.

A successful tender would be a boost for a sluggish economy that is facing a gloomy outlook, besieged by low oil prices, steep budget cuts and uncertainty over bilateral trade following Donald Trump's electoral victory in the U.S.

Oil prices have fallen 61% since mid-2014 and Pemex's production has declined 38% since 2004, to 2.1 million barrels a day.

After 75 years of state monopoly, Mexican President Enrique Peña Nieto took the audacious step of opening up the country's energy sector as part of a broader economic overhaul intended to increase competition and investment in key sectors.

Mr. Peña Nieto has made the energy reform the centerpiece of a plan to reinvent heavily indebted Pemex and obtain lucrative royalties from foreign investors to fund government programs. Roughly 18% of Mexico's federal budget comes from oil.

"Production has been in decline for the last several years, so having a way to reverse that decline is key for Mexico's finances," said Pablo Medina, an analyst at energy research firm Wood Mackenzie.

Analysts expect Trion won't produce its first barrels of oil for eight to 10 years. "This is a long-term fix, but whoever joins Pemex in Trion is going to have potentially a lot of upside," Mr. Medina said.

The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. Senior officials at the Energy Ministry say they would be satisfied if four deep-water blocks plus the partnership with Pemex in Trion are awarded.

State-owned Pemex lacks the technical expertise to build the undersea infrastructure necessary to drill for deep-water crude oil, and joining with an experienced international firm was impossible before the energy reforms. Developing the Trion field, for example, will require an estimated investment of $11 billion.

"We don't have the resources, and we don't have the technology" to produce deep-water oil without partners, said José Antonio González Anaya, Pemex's chief executive.

The level of available reserves in the 10 unexplored blocks is unclear, and oil companies will compete alongside Pemex for exploration and production licenses. Four of the blocks are located near Trion in the Perdido Fold belt, a deep-water region where giants such as Royal Dutch Shell PLC, Chevron and BP are already producing oil on the U.S. side of the Gulf at a rate of about 65,000 barrels a day.

Analysts also will be watching closely to see if any major oil companies make a formal bid for six additional blocks nestled in the southern elbow of the Gulf of Mexico known as the Saline Basin. Much less is known about potential reserves in this area, compared with the active fields in the northern part of the Gulf.

The Saline Basin "is the Great Expectation," said Mr. Zepeda, head of the oil regulator. "It's very risky, but you could find something big."

Write to Juan Montes at juan.montes@wsj.com and Robbie Whelan at robbie.whelan@wsj.com

Related Reading

* Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014)

* Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13)

* Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19)

* Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28)

Credit: By Juan Montes and Robbie Whelan

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845297475

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845297475?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

OFF DUTY --- Eating & Drinking -- Slow Food Fast: Olive Oil-Poached Cod With Cauliflower Couscous

Author: Greenwald, Kitty

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Dec 2016: D.12.

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Abstract:

TOTAL TIME: 30 minutes SERVES: 4 Kosher salt 1/2 large head cauliflower, separated into florets 1 1/4 tablespoon sesame seeds, toasted 1 teaspoon smoked paprika Zest and juice of 1 lemon 1 large garlic clove, minced 4 1/4 cups olive oil 4 (4-ounce) cod fillets Leaves from 7 sprigs mint, roughly torn 10 chives, minced 1.

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[SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES]

The Chef: Mike Wiley

His restaurants: Hugo's, Eventide Oyster Co. and the Honey Paw, all in Portland, Maine

What he's known for: Injecting whimsy and creativity into New England seafood. Anchoring Portland's emerging dining scene.

Cod Has a mild, firm flesh that lends itself to a wide range of preparations. But Maine chef Mike Wiley is especially partial to poaching the fillets in olive oil. "The green, grassy oil perfumes the fish," he said, "and the texture this technique achieves is remarkably luscious and light."

It's a gentle way of cooking, low and slow. "If your fillets are small you can even turn off the heat after adding them," Mr. Wiley said. "Then watch, because they'll be done in under 10 minutes." You'll know the fish is overcooking if you see foamy white albumin, a protein, seeping out of the fillets -- a sure sign it's time to lift them out of the pot.

Here Mr. Wiley serves the cod on a bed of "couscous" made by pulsing blanched cauliflower in a food processor -- "a great option for gluten-free guests," he said. Tossed with a lemony dressing and plenty of mint and chives, it makes a bright, herbal counterpoint to the sumptuous fish.

---

TOTAL TIME: 30 minutes

SERVES: 4

Kosher salt

1/2 large head cauliflower, separated into florets

1 1/4 tablespoon sesame seeds, toasted

1 teaspoon smoked paprika

Zest and juice of 1 lemon

1 large garlic clove, minced

4 1/4 cups olive oil

4 (4-ounce) cod fillets

Leaves from 7 sprigs mint, roughly torn

10 chives, minced

2. In a large bowl, whisk together sesame seeds, paprika, lemon zest, half the juice, garlic and 1/4 cup olive oil. Season with salt to taste and adjust other seasonings as needed. Fold in cauliflower couscous until evenly dressed. Add more salt, oil or lemon to taste.

4. Toss chives and mint into couscous. To serve, distribute couscous among 4 plates and place one cod fillet over each helping.

Credit: By Kitty Greenwald

Subject: Olive oil; Recipes

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: D.12

Publication year: 2016

Publication date: Dec 3, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: Feature

ProQuest document ID: 1845366372

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845366372?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon CEO Now a Contender for Donald Trump's Secretary of State; President-elect widens circle of candidates for top diplomatic job and will interview more prospects

Author: Lee, Carol E; Nicholas, Peter

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Dec 2016: n/a.

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Abstract:

Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.

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President-elect Donald Trump is widening the circle of candidates for secretary of state and will interview more prospects this week, transition officials said, a sign that after multiple meetings with high-profile hopefuls he still isn't sold on whom he wants as the nation's top diplomat.

Though Mr. Trump's transition team said last week that the search had narrowed to four finalists , new candidates have emerged, including Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., one transition adviser said.

Mr. Tillerson is scheduled to meet with Mr. Trump for an interview this week. Alan Jeffers, an Exxon spokesman, declined to comment.

Vice President-elect Mike Pence, appearing Sunday on NBC, said the list of secretary of state candidates "might grow a little bit."

On Sunday evening, Mr. Trump's transition officials said another candidate for both secretary of state and energy secretary is Sen. Joe Manchin (D., W.Va.). The conservative Democrat would add a bipartisan dimension to the Trump cabinet if chosen.

Mr. Manchin has experience in both realms, serving on the Senate's Energy and Natural Resources Committee and the Armed Services Committee. His office didn't respond to a request for comment.

And U.S. Rep. Dana Rohrabacher (R., Calif.) said in an interview Sunday he is talking to Trump transition officials about the secretary of state job. He said he has pitched to them an arrangement in which he would serve in the top job and a deputy would be John Bolton, a former ambassador to the United Nations.

Mr. Bolton--who also is in the running for the secretary of state post--held a private meeting with the president-elect Friday at Trump Tower.

Kellyanne Conway, a senior Trump adviser, told reporters Sunday: "It is true that he's broadened the search...He's very fortunate to have interest among serious men and women who, all of whom need to understand that their first responsibility as secretary of state would be to implement and adhere to the president-elect's America First foreign policy, if you will, his view of the world."

A final decision could come by week's end, the transition adviser said.

Secretary of state is the most prominent missing piece in a national security team that is quickly taking shape. At a rally in Cincinnati last week, Mr. Trump announced he selected retired Gen. James Mattis to head the Pentagon as defense secretary. He has tapped another retired general, Michael Flynn, to serve as his national security adviser.

Normally an opaque process, the hunt for the next secretary of state has played out in an unusually public fashion.

Another top candidate is 2012 Republican presidential nominee Mitt Romney, who clashed bitterly with Mr. Trump during the GOP primaries this year. Last Tuesday, Mr. Trump had dinner with Mr. Romney in Manhattan.

Setting aside the campaign hostilities and perhaps trying to make amends with Mr. Trump's supporters, Mr. Romney told reporters afterward that he was "impressed" with the transition effort.

Gen. Petraeus pleaded guilty in 2015 to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. He addressed his legal troubles in an appearance Sunday on ABC, saying, "I made a mistake. I have again acknowledged it. Folks will have to factor that in and determine whether that is indeed disqualifying or not."

One of the questions Mr. Trump faces is whether he wants a trifecta of generals as his core national security team. That would be the upshot if he picks Mr. Petraeus.

Coming to the presidency with no foreign policy or government experience, Mr. Trump could rely more heavily on his national security team than his predecessors.

So far he has chosen to largely freestyle his engagement with foreign leaders, rather than rely on the State Department's guidance for such conversations.

Mr. Trump sent shock waves through the diplomatic community Friday when he spoke with President Tsai Ing-wen of Taiwan, the first conversation between a U.S. president-elect, or president, and the leader of Taiwan since 1979. The conversation ran against Beijing's efforts to block formal U.S. relations with the island off China's coast, which it has long considered a Chinese territory and not a sovereign nation.

Choosing a secretary of state with scant foreign policy background, such as Exxon's Mr. Tillerson, could further unnerve government officials serving in an institution that functions on strict protocols.

Mr. Trump also faces a decision on whether he wants a more hawkish foreign policy or one favoring diplomacy over military engagement.

During the campaign, he signaled that he wants a military posture that is less interventionist, eschewing "nation-building" and "regime-change." Yet he has vowed to intensify military action against Islamic State.

"The balance of personalities in the [White House] Situation Room is really important. It's one of the few places where all the parts of government come together to shape foreign policy and presidential decision making," said Phil Carter, director of the Military, Veterans and Society Program at the Center for a New American Security, a bipartisan think tank.

"They have to bring their personalities and their judgment to the table," Mr. Carter said. "Who you have in that room and in that decision process can have a big impact."

Mr. Tillerson, 64 years old, grew up in Texas and joined Exxon in 1975. He leads a company with operations in more than 50 countries, from Canada to Papua New Guinea, that often exerts itself abroad with the sweep of a sovereign nation. He is slated to retire next year and Exxon has identified Darren Woods as a successor.

As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders, including Russia's Vladimir Putin, with whom he has had dealings for more than a decade .

Mr. Tillerson's close ties to the company, including tens of millions of dollars of Exxon shares that will become available to him in the coming decade, could complicate his efforts to lift sanctions or intervene in trade disputes where Exxon has a financial interest. It would be almost impossible for him to recuse himself from working with all the countries in which Exxon operates or markets products.

Mr. Tillerson's corporate pedigree would make him an unconventional choice, foreign policy analysts said. Jon Alterman, a Middle East expert at the nonpartisan Center for Strategic and International Studies, noted that former Secretary of State John Foster Dulles was a lawyer at a top New York City firm, but not a CEO, and that George Shultz was president of Bechtel Corp., but also served in government.

"Both are far, far, far smaller companies than Exxon Mobil," Mr. Alterman said. "I can't think of a CEO with no government experience becoming secretary of state."

As head of a company with a massive global footprint, Mr. Tillerson, though, is no stranger to foreign leaders.

As Exxon's chief executive, he has spoken against sanctions on Russia, where the company in 2012 signed a $3.2 billion deal that Mr. Putin said could eventually reach $500 billion in investments.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," Mr. Tillerson said at the company's annual meeting in May 2014.

Mr. Tillerson has some of the closest ties among U.S. CEOs to Mr. Putin and Russia, with his work there dating back to when Mr. Putin rose to power after Boris Yeltsin's resignation. The 2012 deal gave Exxon access to prized arctic resources. Later that year, the Kremlin bestowed the country's Order of Friendship on the American businessman.

Mr. Tillerson supported a Trump rival in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another $5,000 to the Right to Rise, the super PAC that backed Mr. Bush. He didn't make a contribution to Mr. Trump's campaign, according to the Center for Responsive Politics, which tracks political giving.

Bradley Olson and James V. Grimaldi contributed to this article.

Write to Carol E. Lee at carol.lee@wsj.com and Peter Nicholas at peter.nicholas@wsj.com

Credit: By Carol E. Lee and Peter Nicholas

Subject: Presidents; Foreign policy; International relations; Political campaigns; National security

Location: United States--US

People: Pence, Mike Mattis, James Rohrabacher, Dana

Company / organization: Name: Department of Defense; NAICS: 928110; Name: United Nations--UN; NAICS: 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 4, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845549112

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845549112?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Futures Ease in Asia Following OPEC Bounce; February Brent crude lost 50 cents, or 0.9%, to $53.96 a barrel

Author: Strumpf, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

New drilling activity in the U.S. had been slipping this year, but Baker Hughes Inc. reported that the number of rigs drilling for oil in the U.S. rose by three in the last week to 477.

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Oil futures slipped in Asia trading on Monday, giving back ground following last week's sharp rally touched off by a new supply agreement by OPEC.

Light, sweet crude for January delivery lost 43 cents, or 0.9%, to $51.25 a barrel on the Globex Electronic session of the New York Mercantile Exchange. February Brent crude lost 50 cents, or 0.9%, to $53.96 a barrel.

Futures retreated as traders continued to weigh last week's deal by the Organization of the Petroleum Exporting Countries. Nymex and Brent crude both gained more than 12% last week after the agreement to cut the equivalent of 1% of global supply.

The deal is set to take effect in January, though questions remain over the deal's enforcement. But news that non-OPEC members, such as Russia and Oman, could also reduce their output bolsters the deal's credibility, analysts said.

"The agreement of some non-OPEC members to join the pack marks how significant the deal is," wrote Stuart Ive, private client manager at OM Financial.

Many analysts expect greater volatility in the next year as prices seek out a new floor. Citigroup said in the oil market, "we expect price swings of as much as $20 to $25 a barrel to become part of the new norm."

Some market watchers have noted that higher prices are likely to simply lead to higher production from U.S.-based shale producers, whose output is more profitable with oil above $50 a barrel. New drilling activity in the U.S. had been slipping this year, but Baker Hughes Inc. reported that the number of rigs drilling for oil in the U.S. rose by three in the last week to 477.

Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 128 points to $1.5463 a gallon, while January diesel traded at $1.6481, 100 points lower.

ICE gasoil for December changed hands at $472.75 a metric ton, down $2.25 from Friday's settlement.

Write to Dan Strumpf at daniel.strumpf@wsj.com

Credit: By Dan Strumpf

Subject: Crude oil; Cartels; Agreements

Location: Russia United States--US Oman Asia

Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845630050

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845630050?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Prices Rose 12% Last Week

Author: Sider, Alison; Salvaterra, Neanda

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Dec 2016: B.11.

ProQuest document link

Abstract:

Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back output by 1.2 million barrels a day.

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Oil prices rose for a third straight day on Friday, after OPEC's agreement to cut output for the first time in eight years.

U.S. crude futures rose 62 cents, or 1.2%, to $51.68 a barrel on the New York Mercantile Exchange, its highest settlement since July 2015. Brent, the global benchmark, gained 52 cents, or 0.96%, to $54.46 on London's ICE Futures Exchange.

Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back output by 1.2 million barrels a day. "At this point I don't think too many people are willing to stand in front of it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates.

U.S. crude futures gained 12.2% this past week -- the largest weekly percentage gain since 2009. But some market participants say crude's rally could be running out of steam.

The deal to cut production is expected to take effect in January, and participating oil-producing nations will reassess in six months with an option to extend the accord for an additional six months.

Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by underreporting or producing beyond their allotted limits.

Credit: By Alison Sider and Neanda Salvaterra

Subject: Commodity prices; Crude oil

Location: United States--US

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.11

Publication year: 2016

Publication date: Dec 5, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845685562

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845685562?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Prices Continue OPEC Rally; Prices rise to fresh one-year high after the Organization of the Petroleum Exporting Countries agreed to pull back output

Author: Puko, Timothy; Salvaterra, Neanda

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

Russia increased its oil production to a record 11.2 million barrels a day in November. Since Moscow has indicated that any production cut would be based on the November level, the country would still be producing significantly more crude oil in the first half of 2017 than it was just a few months ago, said Commerzbank in an analyst note.\n

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Oil prices edged up to a fresh one-year high Monday, adding to last week's sharp rally from OPEC's agreement to cut production.

The market is extending gains as many analysts raise hopes the Organization of the Petroleum Exporting Countries is more likely to abide by this deal than others from years past. Its members are notorious for exceeding production quotas, but this time severely bloated stockpiles and the past month's rise in prices may make them more likely to follow through, analysts said.

"Beside they only must be on their best behavior for a few months to get the market into a daily supply deficit," Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said in a note.

Light, sweet crude for January delivery settled up 11 cents, or 2%, to $51.79 a barrel on the New York Mercantile Exchange. It is the highest settlement since July 14, 2015.

Crude prices gained almost 15% last week after OPEC agreed to pull back output by 1.2 million barrels a day. Investors are now waiting for the outcome of a Dec. 10 meeting between the cartel and non-OPEC producers such as Russia, which will also focus on production limits.

Russia has said it is willing to participate in the OPEC deal. But Moscow has failed to follow through on similar agreements in the past.

Energy Aspects is assuming Russian production freezes at 11 million barrels a day, just below its current record high. It also expects OPEC to cut output to 32.8 million barrels a day, within about 400,000 barrels of the cap the group announced last week. The London consultancy is forecasting 82% compliance from within the group, saying Iraq will likely not follow through, but Iran will peak about 200,000 barrels a day below its quota.

"The market should not assume this is just a six-month deal," Amrita Sen, Energy Aspects' chief oil analyst said in a note. "OPEC's primary goal is to run down the inventory overhang rather than target higher prices."

Inventories should shrink by 500,000 barrels a day in the first half of next year because of the agreement, she added. That should keep prices stable at this higher level until investment cuts from outside OPEC lead to more shortfalls and even higher prices starting after 2018, according to Piper Jaffray Cos.' Simmons & Co. International.

But the bank is capping its price forecast until then at about $60 a barrel, it said in a note Monday morning. Inventories are still so high and U.S. shale-drillers could immediately put more oil on the market to take advantage of the recent rally, capping it in a new range between $50 and $60 a barrel, the bank said.

But some are still skeptical of the deal, especially the linchpin of Russian participation. OPEC expects producers from outside the cartel, including Russia, to join with additional cuts totaling 600,000 barrels a day.

"I would be surprised to see any significant action on this side," said Eugen Weinberg, head of commodity research at Commerzbank AG. "Russia is the ultimate beneficiary of this deal because not only do they benefit from the higher oil price but also from the market share they can take from OPEC."

Russia increased its oil production to a record 11.2 million barrels a day in November.

Since Moscow has indicated that any production cut would be based on the November level, the country would still be producing significantly more crude oil in the first half of 2017 than it was just a few months ago, said Commerzbank in an analyst note.

Gasoline futures lost 0.16 cent, or 0.1%, to $1.5575. Diesel futures lost 0.1 cent, or 0.1%, to $1.6571 a gallon.

Benoit Faucon and Georgi Kantchev contributed to this article.

Write to Timothy Puko at tim.puko@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com

Credit: By Timothy Puko and Neanda Salvaterra

Subject: Crude oil; Inventory; Crude oil prices; Petroleum production

Location: Russia

Company / organization: Name: Piper Jaffray Cos; NAICS: 523120; Name: New York Mercantile Exchange; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845714230

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845714230?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

Riverstone Investing $150 Million in Mexican Energy Company; Avant Energy will build oil-and-gas infrastructure in Mexico

Author: Garcia, Luis

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

First Reserve Corp. and BlackRock Inc. in March 2015 announced the acquisition of stakes in Los Ramones II, a network of 744-kilometer pipelines that will transport cheaper natural gas from the fields in South Texas into Mexico's market.

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Energy investor Riverstone Holdings made an initial $150 million line-of-equity investment in Avant Energy S. de R.L. de C.V., a newly formed Mexican energy company, according to a news release.

The deal is the latest of a series of private-equity investments in builders and operators of oil-and-gas infrastructure in Mexico as investors aim to take advantage of the country's opening of its energy sector to foreign and private capital.

Riverstone's investment can be increased to $300 million once the initial capital has been deployed. Avant Energy executives also made additional capital commitments "for undisclosed amounts," according to the release.

With offices in Mexico City, Monterrey and Houston, Avant Energy will concentrate on the development, construction and operation of infrastructure for Mexico's oil, natural gas, refined products and electricity sectors, as well as participate in Mexico's recently liberalized markets for these products and services, according to the release.

As Mexico auctions rights to its deep-water fields Monday, one of the most anticipated bids since reforms ended the state's monopoly of the energy sector in 2013, private-equity firms are investing in the infrastructure necessary to sustain the expected expansion of Mexican oil-and-gas industry.

Two months later, Partners Group made a $500 million new investment in Fermaca Enterprises S. de R.L. de C. V.--a pipeline builder and operator in which the European firm had acquired a controlling stake in 2014--while KKR & Co. formed a joint venture with Monterra Energy LLC, which plans to construct a 270-kilometer pipeline to transport imported refined products from the port city of Tuxpan to Central Mexico.

New-York-based Riverstone makes buyout and growth-capital investments in the exploration and production, midstream, oil-field services, power and renewable sectors of the energy industry.

Credit: By Luis Garcia

Subject: Pipelines; Acquisitions & mergers; Equity; Infrastructure; Natural gas; Energy industry; Private equity

Location: Mexico

Company / organization: Name: First Reserve Corp; NAICS: 523920; Name: Partners Group; NAICS: 523920; Name: Kohlberg Kravis Roberts & Co LP; NAICS: 523920; Name: BlackRock Inc; NAICS: 523930, 525910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Pro Private Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845849091

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845849091?accountid=7117

Last updated: 2017-11-23

Database: The Wall Street Journal

Australia's BHP Billiton Wins Bidding for Stake in Mexico's Trion Oil Field; BP and BHP Billiton were only two bidders on partnership with Pemex

Author: Whelan, Robbie; Harrup, Anthony

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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MEXICO CITY--The world's largest oil companies won rights to develop Mexico's offshore oil deposits in an auction that led to twice as many awards as officials expected and could generate $40 billion in investment.

Eight of the 10 exploration blocks available were snatched up in competitive bidding by firms including Exxon Mobil Corp., Chevron Corp., and China's state-run China National Offshore Oil Corp.

Australia's BHP Billiton also made history by becoming the first foreign company to join state oil firm Petróleos Mexicanos in developing the already discovered Trion oil field in the Gulf of Mexico.

The Trion partnership and the deep-water auctions were the centerpiece of President Enrique Peña Nieto's 2013 energy reform laws, which opened Mexico's energy industry to foreign investment for the first time since nationalization in 1938.

"We've very happy that this investment will come to Mexico," said Juan Carlos Zepeda, head of the country's energy regulator, the National Hydrocarbons Commission. "The energy reform initiated by President Pena is a success."

Mexican energy officials said the eight blocks plus Trion eventually should lead to production of 900,000 barrels a day of oil equivalent.

BHP Billiton outbid BP PLC for a 60% stake in the Trion field, believed to contain 485 million barrels of crude oil, by offering a bonus payment $624 million, just $18 million more than its British rival.

Among the biggest winners was China's Cnooc, which won rights to explore and develop two blocks in the oil-rich central portion of the Gulf of Mexico. Cnooc offered some of the highest royalty payments, committing to pay 15.01% of its gross income on one block and 17.01% on another.

"We salute that the Chinese business has come to compete in Mexico and to win," said Pedro Joaquín Coldwell, Mexico's Secretary of Energy. "When we talk about diversification, we don't only refer to the scale of the companies...we also refer to nationalities."

"The way the Chinese are approaching Mexico's energy industry is very similar to the way they approached Brazil," said R. Evan Ellis a Latin American studies professor at the U.S. Army War College, referring to the policy of investing in small companies and setting up investment funds first, then taking exploratory steps to develop caches of resources.

Cnooc couldn't be reached for comment.

Other successful foreign bidders include a consortium included France's Total SA alongside Statoil ASA and BP, and another group including Murphy Oil Corp., Ophir Energy and Malaysia's Petronas Carigali.

Aside from securing a partner for Trion, Pemex won one block in a consortium with Chevron and Japan's Inpex Corp., and lost in another in which it bid alone.

They were the first competitive bids for Pemex, which had a monopoly on oil exploration and production in Mexico since 1938.

"Pemex is realizing the need to change and adjusting to the new reality," said Pablo Medina, a Latin America upstream analyst at energy research firm Wood Mackenzie.

For Trion, both Billiton and BP offered additional royalties of 4%, on top of the minimum royalty payment of 7.5%, while Billiton offered an additional cash commitment of $624 million, higher than the $606 million offered by BP.

Billiton will have 60% of the project and Pemex 40%, and as winning bidder is obliged to make a minimum investment of $570 million.

Timothy Callahan, a director general with BHP Billiton, said his company became more confident in its bid after Pemex in early November changed certain terms in the Trion joint operating agreement, including voting procedures governing the contract.

The auction is the fourth under the 2013 opening of the Mexican oil industry, but the first for deep-water reserves and the first to attract the interest of major oil companies.

The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. It is expected to cost about $11 billion to develop the field, with capital expenditures of $7.5 billion, according to Mexican oil regulator National Hydrocarbons Commission.

Write to Robbie Whelan at robbie.whelan@wsj.com and Anthony Harrup at anthony.harrup@wsj.com

Related Reading

* Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014)

* Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13)

* Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19)

* Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28)

Credit: By Robbie Whelan and Anthony Harrup

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845849267

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845849267?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

CFTC Leaves Shaping Position Limits Rule to Trump Administration; Regulator fails to complete long-delayed rule to curb speculation in commodities like oil and gold

Author: Ackerman, Andrew; Osipovich, Alexander

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

The Commodity Futures Trading Commission voted unanimously Monday to float, for the third time since 2011, a proposed rule that would cap the size of trading positions firms could take in more than two dozen core commodity contracts, including a variety of energy and precious-metals commodities, to curb any one trader's influence.

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WASHINGTON--U.S. regulators failed to put the finishing touches on a much-debated, long-delayed rule to limit speculation in commodities like oil and gold, opting instead to propose a scaled-back version that leaves its outcome in the hands of the Trump administration.

The move punts a decision on the rule's final contours to the Trump administration, which has pledged to dismantle the Dodd-Frank financial law that authorized the restrictions.

"I did not want to finalize a rule that next year the commission would choose not to defend or implement," CFTC Chairman Timothy Massad said on a call with reporters.

Specifically, the latest proposal would restrict a firm from owning more than the equivalent of 25% of a commodity's estimated "deliverable supply" in a given month. In some cases, however, it would effectively raise the position limits because it would increase the estimated supply of the commodities. Monday's version also gives traders more leeway than prior iterations of the measure if they are managing business risks.

Mr. Massad, who is expected to step down by early next year, had pledged at his 2014 Senate confirmation hearing to "make it a priority" to finalize the controversial "position limits" rule, aimed at curbing speculation by Wall Street trading in certain commodity contracts. The rule gained traction in Congress during an oil-price spike in 2008, which some attributed to excessive speculation by short-term traders.

On Monday, Mr. Massad said the commission worked hard to complete the measure during his tenure but its complexity led to delays. Indeed, Monday's proposal spans more than 900 pages and has over 1,000 footnotes, up from about 200 pages in 2013. Mr. Massad said the bulk of the sprawling proposal is not rule text, but rather summaries of the extensive comments and analysis the agency has received over the years.

The rules stem from the 2010 Dodd-Frank regulatory overhaul that gave the CFTC authority to extend trading restraints, or position limits, to commodities such as natural gas and silver. Agricultural and livestock commodities have long had limits on speculation.

Gary Gensler, the CFTC's hard-charging former chairman, originally proposed the curbs in 2011, but they were overturned by a federal court in 2012 only to be revised and again proposed by Mr. Gensler in late 2013. Those rules were never completed.

Monday's unexpected decision to revise the 2013 proposal is an ominous sign for other unfinished priority projects set by the Obama administration for Wall Street oversight.

These include efforts by the Securities and Exchange Commission to rein in the use of risky financial instruments in mutual funds that are sold to the public, restrictions on the payday-lending industry floated by the Consumer Financial Protection Bureau, and the Federal Reserve's efforts to force big banks to issue debt that can be converted to equity in a crisis, reducing the need for a taxpayer bailout.

Antonio Weiss, a senior Treasury official, said Monday at a conference on financial regulation that he's "hopeful" that a pending rule reining in executive compensation at large financial institutions "will be finalized" but added that "it's certainly at risk due to fragmentation."

The CFTC's decision to delay a final version of the rule contrasts sharply with the position taken by European policy makers, who moved last week to complete their own version of the rule, effective in January 2018.

Though Republican lawmakers have warned regulators not to rush to complete rules in the waning days of the Obama administration, J. Christopher Giancarlo, the CFTC's sole Republican, said he backed Monday's scaled-back measure. Mr. Giancarlo, who is expected to become acting chairman early next year, said in a written statement that he is "comfortable" that Monday's proposal "provides the basis for the implementation of a final position-limits rule that I could support."

Tyson Slocum, director of Public Citizen's energy program, which has advocated for the curbs, said Monday's decision is "really disappointing" and that Mr. Massad should have finalized the rule months ago.

"Chairman Massad had plenty of time to finalize this rule earlier this year and his failure to do so is going to end up harming consumers," he said.

Monday's proposal, unlike the 2013 version, would give energy firms greater leeway to avoid the restrictions by broadening the "bona fide hedge exemptions" available to energy firms that use futures and swaps to protect against swings in commodity prices. Industry groups had lobbied the CFTC to broaden the exemptions, saying they were needed to prevent the rule from inadvertently preventing the legitimate hedging strategies of oil producers, electric utilities and other energy firms. Critics worry the exemptions could be used to circumvent the limits and allow speculation under the guise of hedging.

Write to Andrew Ackerman at andrew.ackerman@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com

Credit: By Andrew Ackerman and Alexander Osipovich

Subject: Futures trading; Regulation of financial institutions; Commodity futures; Executive compensation

Location: United States--US

Company / organization: Name: Congress; NAICS: 921120; Name: Commodity Futures Trading Commission; NAICS: 926140, 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845853882

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845853882?accountid=7117

Last updated: 2017-11-24

Database: The Wall Street Journal

OPEC to Seek More Oil-Output Cuts from Nonmembers; Representatives from 14 countries invited to meet in Vienna on Saturday

Author: Faucon, Benoit; Said, Summer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy.

Links: 360 Link to Full Text

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OPEC's agreement to slash oil output faces its first test Saturday, when it asks producers outside the cartel to make production-cut commitments intended to amplify the effect of the landmark deal.

The Organization of the Petroleum Exporting Countries has invited representatives from 14 countries to meet in Vienna on Saturday to discuss joining the cartel after it agreed last week to slash 1.2 million barrels of daily oil production--over 1% of global output. In all, OPEC wants its non-OPEC counterparts to slash 600,000 barrels a day.

Four countries have committed to attend Saturday: Russia, Oman, Bahrain and Azerbaijan. OPEC officials believe Mexico and Kazakhstan are also likely to come.

Their participation is crucial, OPEC officials say. Without it, the oil-price gains of the past week would be imperiled, and the OPEC production deal itself could be severely undermined, OPEC officials said.

Saudi Arabia "absolutely" expects non-OPEC producers to reduce their output, one of these officials said. The kingdom helped orchestrate the first OPEC production cut in eight years by promising that non-OPEC producers would join in.

Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy. Oil prices have soared over 15% since OPEC announced its first production-cut deal since 2008, with Brent crude, the international benchmark, rising above $55 a barrel for the first time this year on Monday.

Saturday's meeting is a potential "hurdle for the bulls," said Dominick Chirichella's Energy Market Analysis in a note Monday.

On Saturday, OPEC plans to press its rivals to agree to specific cuts and allow production to be monitored by a committee with three OPEC members and two non-OPEC members.

In an interview, OPEC Secretary General Mohammad Barkindo said it would be "the first time OPEC [and] non-OPEC will agree to a joint, binding supply-management agreement." At a speech in India on Monday, Mr. Barkindo said OPEC had "institutionalized" its ability to cooperate with non-OPEC countries.

But getting non-OPEC members to agree may be a tougher sell than expected.

Russia, the world's largest producer of crude oil, has already said it would "gradually" reduce production by 300,000 barrels a day next year in coordination with OPEC. It didn't give a time frame, as OPEC members did last week, nor did it say it would accept international monitoring of its output.

In the interview, Mr. Barkindo said Russia had "agreed in principle"

"Details will be discussed and agreed upon" Saturday, he said.

Moscow's participation was essential to OPEC's ability to agree last week, people familiar with the matter said. The first call Saudi energy minister Khalid al-Falih made after the OPEC deal was sealed was to Russian energy minister Alexander Novak, to get assurances that Moscow would commit to cuts, the people said.

Russia has said it would join OPEC output cuts in the past, only to renege.

In a note Monday, Vienna-based oil consultancy JBC said it was "quite skeptical that [a Russian output cut] will actually happen." Russian oil production reached a new post-Soviet high in November at 11.22 million barrels a day.

The other countries expected to attend talks in Vienna offer a complex picture.

Kazakhstan was reluctant to join production cuts this year. A giant new oil field there, called Kashagan, recently started producing, and the cash-strapped central Asian country is expected to increase output by 210,000 barrels a day to 1.77 million barrels a day in 2017, according to OPEC projections.

Kazakhstan hasn't confirmed its participation and didn't respond to requests for comment.

Oman and Bahrain produce 1 million barrels a day and 200,000 barrels a day, respectively, but their output is supposed to stagnate in 2017, according to OPEC. That means cutting may be easier to swallow there. Officials in these countries declined to comment on their production plans beyond confirming their attendance.

In Azerbaijan, where output is set to fall by 30,000 barrels a day to 840,000 barrels a day in 2017, the energy minister Natig Aliyev said in a news release that he would support the OPEC deal. Azeri officials didn't respond to requests for comment.

In Mexico, where oil companies produce 2.1 million barrels a day, the country's output is expected to fall next year by almost 10%.

Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com

Credit: By Benoit Faucon and Summer Said

Subject: Cartels; Petroleum production; Energy industry; Crude oil

Location: Oman Bahrain Azerbaijan Russia Kazakhstan

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845853986

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845853986?accountid=7117